TOKYO: Japan’s Nikkei share average rose on Thursday after a seven-day slide, as Wall Street’s overnight gains and a weaker yen buoyed investor sentiment.
The Nikkei index closed 3.4% higher at 36,833.27 in broad-based buying. The broader Topix finished up 2.4% at 2,592.5.
The yen softened after hitting its highest against the dollar this year in the previous session.
“Due to the impact of the (US) consumer price index report, we are seeing the yen trend weaker. This seems to be contributing to positive movements in Japanese stocks,” said Hiroshi Namioka, chief strategist at T&D Asset Management.
In a boost to the dollar, Wednesday’s CPI report indicated some stickiness in inflation, crushing bets that the Federal Reserve would cut interest rates by 50 basis points next week.
Shares of exporters, which tend to benefit from a weaker domestic currency, rebounded.
Among the Tokyo Stock Exchange’s 33 industry groupings, transport equipment, which includes automakers, climbed 2.4% and was among the top performers.
Comments