Tokyo stocks edge up on weak yen
Tokyo, (MILLAT ONLINE):Tokyo stocks inched up on Wednesday as market sentiment revived moderately thanks to a weaker yen against the dollar.
The benchmark Nikkei 225 index rose 0.21 percent or 45.71 points to close at 21,970.81 but the broader Topix index lost 0.05 percent or 0.84 points at 1,761.61.
The Nikkei had opened slightly lower following drops on Wall Street, with disappointing Walmart results weighing on US retailers and the broader US markets. The blue-chip Dow Jones Industrial Average closed 1.0 percent lower.
“But buying sentiment revived thanks to the yen’s weakness against the dollar,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.
Investors, however, remain uneasy after fears of US inflation and higher interest rates triggered wild swings on stock markets in recent weeks.
Shinichi Ichikawa, chief market strategist at Credit Suisse Securities, said “volatility has been subdued for now”. Markets were waiting to see whether US jobs data for February released next month would show robust wage growth, before predicting inflation trends.
“The US economic expansion since 2009 stemmed from money and low interest rates provided by the Fed, which prompted corporate capital investment… That could start a backspin,” he told AFP.
The dollar was trading at 107.79 yen, up from 107.32 yen in New York on Tuesday and the 106-yen range seen a day earlier.
“The 107-yen level is a level where companies may be able to secure profits for the next fiscal year, so expectations over solid corporate earnings will likely continue,” Mitsuo Shimizu, deputy general manager at Japan Asia Securities, told Bloomberg News.
Sony jumped 1.54 percent to 5,378 yen while Nintendo climbed 1.72 percent to 47,770 yen.
Toyota rose 0.12 percent to 7,300 yen as Honda gained 1.63 percent to 3,847 yen, with Nissan up 0.40 percent at 1,121.5 yen.