This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks climbed Thursday on firm exporter issues as the yen weakened after Japan’s tariff negotiator said exchange rates were not among the topics discussed during talks with the United States.
The 225-issue Nikkei Stock Average ended up 457.20 points, or 1.35 percent, from Wednesday at 34,377.60. The broader Topix index finished 32.20 points, or 1.29 percent, higher at 2,530.23.
On the top-tier Prime Market, gainers were led by oil and coal product, insurance and bank issues.
After hitting a seven-month low of 141.64 yen overnight, the dollar rebounded to the upper 142 yen zone in Tokyo, as the yen was sold due to receding expectations of Washington immediately demanding action to address the dollar’s strength against the yen following the remark from Japan’s tariff envoy Ryosei Akazawa, dealers said.
The yen also remained under pressure after Bank of Japan chief Kazuo Ueda told a parliamentary committee that hefty U.S. tariffs could have an adverse impact on global financial markets, in a remark perceived by market participants as dovish, they said.
On the stock market, the Nikkei index advanced throughout the day, helped by the buying of export-linked machinery and electronics issues on a weaker yen, which boosts exporters’ overseas profits when repatriated.
Investors were also relieved as no negative surprises were sprung during the first ministerial talks at the White House, such as the administration of President Donald Trump proposing additional levies, brokers said.
Although investors were cautious before the start of the negotiations, “The talks gave an impression that (the United States) would be negotiable,” said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
Stocks further climbed in the afternoon as semiconductor-related issues attracted buying after Taiwan Semiconductor Manufacturing Co. reported favorable earnings, saying its net profit in the January-March period increased 60 percent from a year earlier.
AloJapan.com