TOKYO: Japanese equities closed at new highs on Wednesday, with the weakest yen rate since November boosting automakers, while energy shares outperformed amid a surge in crude oil prices.
The Nikkei 225 share average finished the day up 0.62% to 33,241.02, its highest close in a month.
The broader Topix added 0.62% to 2,392.53, a fresh 33-year peak.
Both indexes extended winning streaks to an eighth straight session, the longest run since mid-May for the Nikkei and since mid-April for the Topix.
“Dollar-yen continues to climb and is making the whole export sector in Japan more competitive,” said Tony Sycamore, a market analyst at IG, who predicts a possible rise to 35,000 for the Nikkei this year. “I don’t really see anything at this time to unsettle the dollar-yen or the Nikkei. They both look extremely robust.”
Transport equipment was among the best-performing of the Tokyo Stock Exchange’s 33 industry groups, jumping 2% as the yen’s slide towards 148 per dollar boosted the value of overseas revenues.
Honda advanced 1.91%, Toyota gained 2.39% and Mazda surged 4.67%.
Oil and coal rallied 1.47%, after crude topped $90 per barrel for the first time since November as Saudi Arabia and Russia extended voluntary supply cuts to the end of the year.
Miners also outperformed, gaining 1.77%.
Securities firms, insurers and banks gained 2.01%, 1.69% and 1.33%, respectively, as a rise in long-term bond yields improved the environment for investing.
Chip-related stocks also rose, with Advantest gaining 3.01% and Tokyo Electron adding 1.94%.