TOKYO: Japan’s Nikkei share average advanced on Tuesday as a softer yen lifted exporter shares, while stocks with a connection to China soared on Beijing’s new promises of an “appropriately loose” monetary policy next year.
The Nikkei rose 0.09% to 39,197.42 by the midday break, while the broader Topix gained 0.14% to 2,738.26.
Automakers were among exporter shares that climbed as the yen softened against the US dollar.
The dollar was trading around 151.14 yen during the session.
Toyota Motor advanced 0.9%, Suzuki Motor soared 3.5% and Honda Motor added 1.8%.
Fanuc and Yaskawa Electric, up 3.6% and 2.6% respectively, and other shares with strong ties to China rallied, after Beijing’s surprise announcement on Monday that it plans to implement a looser monetary policy and more proactive fiscal policy.
Shiseido jumped 4.9% to become the top percentage performer on the Nikkei.
A portion of Japan’s chip-related shares tracked AI leader Nvidia NVDA.O and other US technology shares lower after China’s market regulator launched a probe into Nvidia over suspected violation of the country’s antimonopoly law.
Chip-testing equipment maker Advantest, which counts Nvidia among its customers, traded flat after dipping in early trade.
However, the early gains on the Nikkei narrowed as investors awaited the Federal Open Market Committee (FOMC) and Bank of Japan (BOJ) meeting next week for the policy decision.
Japan’s Nikkei tracks Wall Street higher; profit-taking caps rise
“A cut from the Federal Reserve is baked-in, but there’s uncertainty about what the BOJ does. So if the latter hikes, a stronger yen will hurt Japanese stocks,” said Kyle Rodda, senior financial market analyst at Capital.com.
However, somewhat more hawkish guidance from the Fed regarding next year’s policy outlook could counterbalance the impact on the dollar-yen pair, Rodda added.
The US inflation report and the BOJ’s “tankan” survey are due this week.
Among other major stocks, chip equipment maker Tokyo Electron gained 2.2%, entertainment conglomerate Sony Group added 4%, while Uniqlo-owner Fast Retailing slid 1.1%.
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