Tokyo shares gain 2.14pc by break on weaker yen

AFP, TOKYO: Tokyo shares jumped 2.14 per cent on a weaker yen yesterday, after strong US jobs data last week bolstered the case for a December Federal Reserve interest rate hike.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange rose 412.79 points to 19,678.39 by the midday break, after closing at its highest level in more than two months last week.
The broader Topix index of all first-section shares added 1.95 per cent, or 30.42 points, to 1,594.01.
Market sentiment got a boost from the weaker yen, as the Japanese currency edged down further against the dollar.
The dollar rose to 123.38 yen from 123.16 yen Friday in New York, its highest level in more than two months.
"It's likely we will see the yen weaken to mid-124 yen to the dollar, because of the different directions of the US and Japan's interest rates," Shoji Hirakawa, chief equity strategist at Okasan Securities Co., told Bloomberg News.
That "will bring big advantages to Japanese exporters. The effect of the Chinese economy's slowdown looks like it will be limited, and it's almost certain that the Federal Reserve will hike interest rates in December."
A weak yen makes Japanese exporters more competitive overseas and inflates the value of their repatriated profits.

 

Tokyo shares gain 2.14pc by break on weaker yen

AFP, TOKYO: Tokyo shares jumped 2.14 per cent on a weaker yen yesterday, after strong US jobs data last week bolstered the case for a December Federal Reserve interest rate hike. The benchmark Nikkei 225 index at the Tokyo Stock Exchange rose 412.79 points to 19,678.39 by the midday break, after closing at its highest level in more than two months last week. The broader Topix index of all first-section shares added 1.95 per cent, or 30.42 points, to 1,594.01. Market sentiment got a boost from the weaker yen, as the Japanese currency edged down further against the dollar. The dollar rose to 123.38 yen from 123.16 yen Friday in New York, its highest level in more than two months. Its likely we will see the yen weaken to mid-124 yen to the dollar, because of the different directions of the US and Japans interest rates, Shoji Hirakawa, chief equity strategist at Okasan Securities Co., told Bloomberg News. That will bring big advantages to Japanese exporters. The effect of the Chinese economys slowdown looks like it will be limited, and its almost certain that the Federal Reserve will hike interest rates in December. A weak yen makes Japanese exporters more competitive overseas and inflates the value of their repatriated profits.