TOKYO: Tokyo markets ended higher Monday, supported by a cheaper yen as investors shunned the currency under the Bank of Japan’s monetary easing policies.
The Nikkei index rose 0.81 percent, or 238.04 points, to end at 29,626.34, while the broader Topix index added 0.88 percent, or 18.46 points, to 2,114.85.
The dollar stood at 136.14 yen, against 135.69 yen in New York on Friday.
“The weakening of the yen against the backdrop of US rate hikes encouraged the buying of stocks with good earnings results,” IwaiCosmo Securities said.
The yen has weakened as the BoJ sticks to its longstanding ultra-loose policies – the opposite tactic to the US Federal Reserve and other central banks, which have hiked interest rates to tackle soaring inflation.
Nikkei falls from 16-month peak on profit taking, US inflation print in focus
In the United States, the Congressional Budget Office said there was a “significant risk” that the country could default by June 15 if there is no deal on raising the debt ceiling.
The uncertainty weighed on Wall Street, with all three main indexes ending in the red on Friday, and Asia mostly followed suit.
Among major shares in Tokyo, SoftBank Group inched up 0.02 percent to 4,950 yen, Sony Group rose 0.74 percent to 12,875 yen and Toyota sank 0.46 percent to 1,933 yen.
Uniqlo operator Fast Retailing advanced 0.97 percent to 31,950 yen.
Comments
Comments are closed for this article.