Wednesday, 15 July 2015 13:20
TOKYO: Tokyo stocks rose 0.38 percent Wednesday, supported by a weaker yen after Japan’s central bank cut its inflation and growth forecasts, boosting the odds of more monetary easing this year.
The Nikkei 225 index at the Tokyo Stock Exchange added 78.00 points to close at 20,463.33, marking a three-day winning streak, while the Topix index of all first-section shares climbed 0.47 percent, or 7.70 points, to 1,646.41.
Tokyo opened higher on a positive lead from Wall Street with upbeat Chinese growth data and easing fears over Greece lifting investor spirits.
Greece on Wednesday geared up for a parliamentary vote on tough reforms demanded by eurozone creditors in exchange for a huge new bailout.
“It looks as if the Greek problem will come to a resolution,” said Masaru Hamasaki, head of the investment information department at Amundi Japan.
“We’re seeing a rebound as the external environment calms down.”
Official data Wednesday showed China’s GDP expanded 7.0 percent year-on-year in the second quarter, beating expectations as months of central bank policy stimulus helped put a floor under the world’s second-largest economy.
Meanwhile, the Bank of Japan cut its annual economic growth and inflation forecasts, fuelling expectations of more stimulus this year and sending the yen lower, which is a plus for Japanese equities.
Investors are now awaiting US Federal Reserve chief Janet Yellen’s twice-yearly testimony to Congress on monetary policy and the state of the world’s largest economy.
Following a weak batch of US retail sales data, investors are keen to see if an interest rate hike is still on track for this year.
“With US retail sales falling short of expectations, investors will be waiting for Janet Yellen’s speech to gauge the situation for US rates and we could easily see some profit taking,” Hiroichi Nishi, a manager at SMBC Nikko Securities, told Bloomberg News.
In share trading, Sony fell 0.93 percent to close at 3,452.5 yen and Toyota climbed 0.88 percent to 8,273 yen while mobile carrier SoftBank gave up most of its earlier gains to finish just 0.09 percent higher at 7,015 yen.
On currency markets, the dollar rose to 123.47 yen from 123.38 yen in New York.
In New York, the Dow Jones Industrial Average climbed 0.42 percent, the S&P 500 advanced 0.45 percent and the Nasdaq rose 0.66 percent.
