TOKYO: Japan’s Nikkei share gauge extended gains for a second session on Thursday as a weaker yen boosted exporters, overshadowing profit-taking by some investors.
The Nikkei rose 0.12% to close at 33,234.14, after jumping as much as 1% earlier. The broader Topix index, however, slipped 0.1% to 2,296.25.
Shares of Nissan Motor jumped 4.17% as the yen’s slide to a seven-month low lifted the value of its overseas sales. Rival Suzuki Motor rose 3.41%.
Soaring Japan tech puts Nikkei on track to snap 4-day losing streak
SoftBank Group climbed 1.31% after the Nikkei newspaper said its telecom unit would invest 20 billion yen ($138.29 million) to develop a generative artificial intelligence system. Chip industry heavyweights Tokyo Electron and Advantest surged more than 2.5%, each.
The yen has steeply depreciated recently, as the Bank of Japan signalled it would maintain its ultra-easy monetary policy for now, even as other major central banks move on a tightening trajectory.
The currency slid to 144.62 per dollar on Wednesday for the first time since Nov. 10, nearing levels that prompted the government to intervene last year to prop up its currency.
“For the companies who are doing business outside the country, their profit is just continuing to inflate due to the yen’s depreciation, which is positive for the stock price,” said Tohru Sasaki, head of Japan Markets Research, JPMorgan Chase Bank.
Foreign investors turned net sellers of Japanese equities after 12 straight weeks of purchases, official data showed. The inflows have helped drive a 21% gain in the Nikkei over the past three months, outpacing global indexes.
“We’re entering a zone where the topside is heavy, or we’re likely to see selling to lock in profits,” said Nomura strategist Kazuo Kamitani.
There were 72 advancers in the Nikkei against 150 losers. Nippon Telegraph And Telephone was among top decliners, sliding 2.84% ahead of a 25-for-1 stock split.
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