TOKYO: Tokyo stocks closed higher on Tuesday as a cheaper yen boosted exporters, with expectations for sound corporate earnings also supporting the market.
The benchmark Nikkei 225 index gained 0.86 percent to close at 22,278.12, while the broader Topix index ended up 1.08 percent, or 18.96 at 1,769.75.
“The market started with buying dominating trade as the yen declined to the upper half of the 108 range” against the dollar, SBI Securities said in a commentary.
Investors were also cautiously optimistic ahead of a quarterly corporate earnings report season starting this week, analysts said.
The dollar has climbed on rising US Treasury bond yields, a signal interest rates could be on the rise amid fresh confidence in the world’s biggest economy.
Higher rates are seen as potentially dangerous to markets because they would make debt payments more expensive and could steer funds away from stocks and into bonds.
But a lower yen often supports the Japanese stock market as it improves outlooks of Japanese exporters.
The dollar was trading at 108.81 yen, little changed from 108.72 yen in New York Monday afternoon and sharply higher than the 107-yen range seen when the Tokyo market closed on Monday.
Toyota rose 2.00 percent to 7,110 yen and Honda gained 1.76 percent to 3,740 yen.
Nippon Yusen climbed 2.61 percent to 2,394 yen and Mitsui OSK Lines closed 2.21 percent higher at 3,455 yen as the Nikkei business daily reported major shipping firms’ earnings are rallying on restructuring efforts and the global economic recovery.
Sharp rallied 2.98 percent to 3,445 yen ahead of its full-year earnings report due on Thursday.
Source: Brecorder
