TOKYO: Japan’s Topix index on Thursday closed at its highest in two-and-a-half months, as auto and tyre makers rallied following weakness in the yen, while Wall Street’s strong finish overnight also lifted market sentiment. The broader Topix ended 0.71% higher at 27,696.44. “The weakened yen lifted sentient.
There were not many market-moving cues, but the market was firm,“ said Shigetoshi Kamada, general manager at the research department at Tachibana Securities. The yen hovered near a six-week low against the dollar after strong US retail sales data drove the greenback’s gain.
A softer yen tends to help exporter shares as it increases the value of overseas profits in yen terms when firms repatriate them to Japan. The automobile sector jumped 1.8%, with Toyota Motor rising 2.08% and Honda Motor gaining 1.16%.
Tyre makers jumped 1.73%, with Bridgestone rising 1.67%. Sumitomo Rubber Industries and Yokohama Rubber advanced 3.81% and 1.85%, respectively.
Chip-making equipment maker Tokyo Electron rose 0.9% and chip-testing equipment maker Advantest climbed 0.99%. “An increase in foreign visitors raised expectations for economic growth,” Kamada said.
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Visitors to Japan climbed to nearly 1.5 million in January, the national tourism agency said on Wednesday, showing an accelerating recovery in tourism after the government scrapped COVID-19 curbs in October.
Department store operators rose, with Matsuya and Takashimaya adding 2.85% and 1.83%, respectively. Paper and pulp makers declined 0.77%, making the sector worst performer among sub-indexes.
Oji Holdings slipped 0.95%.
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