1st LD Writethru: Tokyo stocks close higher as yen's soft tone lifts exporters

0 Comment(s)Print E-mail Xinhua, October 8, 2019
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TOKYO, Oct. 8 (Xinhua) -- Tokyo stocks closed higher Tuesday as the yen's retreat against the U.S. dollar gave exporters a lift and help buoy the broader market despite Wall Street's weak overnight lead.

The 225-issue Nikkei Stock Average added 212.53 points, or 0.99 percent, from Monday to close the day at 21,587.78.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, rose 13.75 points, or 0.87 percent, to finish at 1,586.50.

Local brokers said that exporters and some cyclical issues found favor as the U.S. dollar climbed above the 107 yen mark.

Exporters tend to cheer a weaker yen as profits made in overseas markets are increased when repatriated on favorable exchange rates and overall competitiveness and profit guidances can also be bolstered and upwardly revised.

On this point, Sumitomo Mitsui DS Asset Management Co.'s Masahiro Ichikawa said "As concern about a strong yen receded, export-oriented issues were bought."

The market was also underpinned by solid performances on other Asian bourses, noted Chihiro Ota, general manager of investment research at SMBC Nikko Securities Inc., stating, "Investors were also relieved after seeing solid Asian shares."

But while optimism grew overnight for upcoming trade talks, trading volume remained fairly thin reflecting an ongoing sense of investor consternation amid the protracted issue.

Owing to the yen's retreat, exporters including automakers advanced, with Mazda Motors gaining 0.7 percent.

Chip-related issues, sensitive to external factors, also found traction, with Renesas Electronics climbing 5.4 percent, Tokyo Electron adding 1.4 percent and Advantest ending the day 4.4 percent higher.

Japan Airlines was a notable loser, however, shedding 0.2 percent after the carrier was issued with a second business improvement order from the transport ministry due to a string of cases involving pilots' consumption of alcohol.

By the close of play, precision instrument, metal product and machinery-linked issues comprised those that gained the most, and issues that rose outpaced those that declined by 1,711 to 372 on the First Section, while 70 ended the day unchanged.

On the main on Tuesday, 1,113.28 million shares exchanged hands, rising from Monday's volume of 921.37 million shares.

The turnover on the second trading day of the week came to 1,910.4 billion yen (17.82 billion U.S. dollars). Enditem

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