TOKYO: Japan’s Nikkei share average advanced on Tuesday as a weaker yen buoyed investor sentiment, while long-term domestic bond yields rose to the highest levels in nearly one month and provided an additional boost to banks and insurers.
The Nikkei was up 0.24% at 38,792.33, as of 0215 GMT, with 152 of the index’s 225 components advancing versus 71 trading lower, while two were flat.
The broader Topix climbed 0.61%, with a sub-index of value shares adding 0.82% to outperform a 0.4% rise for growth shares.
Insurers and banks were the top performers among the Tokyo Stock Exchange’s 33 industry groups, each rallying about 1.6%.
Resona Holdings was the Nikkei’s best performing lender, with a 3.4% jump. Long-term Japanese government bond yields rose, while equivalent US Treasury yields also rose on reopening after a public holiday on Monday.
The yen weakened as far as 147.20 per dollar for the first time in two weeks before last changing hands at 146.65. A softer currency inflates the value of overseas revenue when repatriated among Japan’s many exporters.
Japan’s Nikkei hits 1-month high on Wall Street gains, weaker yen
“Japan already has good earnings momentum, which is currently supporting the stock market,” and a weaker currency will boost that further, said Maki Sawada, an equities strategist at Nomura Securities.
At the same time, investors are keeping a cautious eye on US economic data, particularly monthly payroll figures due Friday, Sawada said.
“The overarching theme in the market continues to be the outlook for monetary policy in Japan and the United States,” she said. “Depending on the result of the jobs report, there is the potential for the market to swing sharply.”
Among exporter shares, Toyota Motor rose 0.38%, while Nissan jumped 1.12%. Shares of Sony Group advanced 1%.
Semiconductor-related shares were mostly trading lower though, with chip-testing equipment manufacturer Advantest losing 0.65%.
Chip-making machinery giant Tokyo Electron eased 0.3%.
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