Tokyo stocks close higher as yen edges lower

Tokyo stocks close higher as yen edges lower

The Nikkei 225 index closed up 0.82%, or 195.00 points, at 23,869.93. Over the week, the index gained 3.36%.

Market prices are reflected in a glass window at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, February 6, 2018. (Reuters pic)
TOKYO:
Tokyo stocks closed higher on Friday as the yen eased against the dollar on the backdrop of receding trade war worries that boosted US shares.

The Nikkei 225 index closed up 0.82%, or 195.00 points, at 23,869.93. Over the week, the index gained 3.36%.

The broader Topix index ended up 0.92%, or 16.42 points, at 1,804.02. It climbed 4.36% over the week.

“The market is supported by various bits of positive news although worries over a trade war are lingering,” said Seiichi Suzuki, market analyst at Tokai Tokyo Research Institute, referencing the US-China trade row.

A cheaper yen and a rally in Chinese equities also supported the Japanese market, analysts said.

Looking ahead, technical reasons linked to dividend payments may weigh on the market while trade talks led by the US, including US-Japan trade talks on Monday, “will probably have a limited impact” on the market, Suzuki told AFP.

“I don’t expect a major decision in the Japan-US meeting” next week, he added.

The dollar fetched 112.76 yen in late Asian trade, up from 112.50 yen in New York and 112.32 yen in Tokyo Thursday afternoon.

In Tokyo, exporters were higher, with Honda climbing 2.13% to 3,491 yen, Panasonic gaining 1.94% to 1,366 yen and Sharp closing up 1.52% at 2,393 yen.

Banks were also among the winners, reflecting higher US yields, with Mitsubishi UFJ ending up 1.12% at 722.1 yen and Sumitomo Mitsui Financial rising 1.47% to 4,671 yen.

China-linked shares also gained, with construction machinery maker Komatsu jumping 3.38% to 3,511 yen and electronic parts maker Rohm rallying 3.82% to 8,420 yen.

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