Japan’s Shares Gain Slightly as Weak Yen Post-BOJ Aids Exporters
Japanese shares are rising slightly on Friday as the yen’s weakening on dovish signals from the Bank of Japan supported export-related sectors such as automakers, steel producers and shippers.
The Topix Index rose 0.2% to 2,719.63 as of 9:30 a.m. Tokyo time
The Nikkei advanced 0.2% to 38,880.21
Toyota Motor Corp. contributed the most to the Topix Index’s gain, increasing 2.8%. Out of 2,126 stocks in the index, 1,195 rose and 775 fell, while 156 were unchanged.
With key domestic and overseas monetary policy events out of the way, domestic demand-linked sectors such as builders and pharmaceuticals were also firm.
Bank shares fell after the BOJ left interest rates unchanged Thursday and its Governor Kazuo Ueda cast doubt on whether the bank could hike rates in January. The yen is extending its losses, weakening 0.2% against the dollar after tumbling 1.7% on Thursday.
“Today’s Japanese stocks are likely to have a slightly positive tone due to the yen’s depreciation and the fact that the sharp decline in US stocks after the FOMC meeting has paused,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. “Although the yen’s depreciation isn’t likely to be sustained, exchange rates aren’t at levels that would pose concerns for Japanese corporate earnings.”
Source : Bloomberg
