Wednesday, 16 September 2015 13:00
TOKYO: Tokyo stocks gained 0.81 percent on Wednesday, swept up in a global rally as Asian shares tracked the US and Europe higher ahead of the Federal Reserve’s hotly anticipated interest rate decision.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange surged 145.12 points to close at 18,171.60, while the broader Topix index of all first-section shares was up 0.71 percent, or 10.36 points, at 1,472.60.
Investors remain divided on whether the US central bank will hike rates this week for the first time in almost a decade, with markets pricing the likelihood at around a third according to Bloomberg News.
“Volumes are quite low and people are nervous so any moves tend to be amplified,” said Andrew Sullivan, head of sales trading at Haitony International Securities in Hong Kong.
“The market is divided about the Fed and it’s not just about the direct US impact but the international impact as well,” he said.
Data released Tuesday showed US retail sales rose in August for the second straight month, although by slightly less than expected, giving few fresh clues about what direction the Fed will move.
The figures dispelled some concerns that turmoil in the stock markets sparked by China’s devaluation of the yuan last month may have spilled over into the real economy.
US and European markets rallied. The Dow, S&P 500 and Nasdaq all soared more than one percent, while London, Paris and Frankfurt also saw healthy gains.
Still, some investors are concerned a US rate hike could hurt growth at a time when China, which has been a key driver for the tepid global economy in recent years, is suffering a growth slowdown.
“I suspect whatever they do, about 50 percent of the market will be disappointed and that will prompt a reaction,” Sullivan said.
The gains came after Japan’s central bank held fire on expanding its monetary easing programme Tuesday and, while its policy statement warned of slowing exports and production, its chief said the economy was expanding.
Sony was among gainers after the Japanese videogames giant announced it will slash the price of its popular console Playstation 4 by about 13 percent in Japan. Its shares rose 1.17 percent to close at 3,096 yen.
Car makers also gained ground, with Toyota rising 1.89 percent to 7,297 yen and Yokohama-based Nissan increasing 2.66 percent to 1,157.5 yen.
Market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, fell 1.64 percent to 46,375 yen.
In forex trading, the dollar stood at 120.29 yen, down slightly from 120.40 Tuesday in New York, as traders braced for the Fed decision. Higher rates would tend to strengthen the greenback.
The euro was at $ 1.1280 and 135.68 yen, up from $ 1.1272 and 135.71 yen in New York.
