TOKYO, May 15 (Xinhua) — Japan’s benchmark Nikkei stock index closed at an 18-month excessive Monday, as exporters discovered favor on the yen’s retreat towards the U.S. dollar, whereas shares with strong earnings have been additionally sought.
The 225-issue Nikkei Stock Average gained 238.04 factors, or 0.81 p.c, from Friday to shut the day at 29,626.34, marking its highest closing degree since Nov. 22, 2021.
The broader Topix index, in the meantime, added 18.46 factors, or 0.88 p.c, to complete at 2,114.85.
Local brokers stated the U.S. dollar gained on the yen on the predominant view that the U.S. Federal Reserve will proceed with its aggressive price hikes to fight inflation.
A weaker yen is cheered by exporters right here as earnings made abroad are boosted when repatriated and value competitiveness enhanced in international markets, they defined.
Dealers right here added that together with a relatively weak yen lifting exporters-related points, corporations reporting strong earnings and revenue steerage additionally attracted shopping for.
“Investors scooped up individual stocks that reported positive earnings, which boosted the overall market,” Maki Sawada, a strategist at Nomura Securities, was quoted as saying.
More particularly, some market analysts stated that on the again of some disappointing earnings final week from Japanese bellwethers like GentleBank Group and Mazda Motor, earnings stories that weren’t as dangerous as anticipated lifted shares larger.
“Earnings reported by Japanese firms were relatively good, or at least not as bad as expected,” Makoto Sengoku, senior fairness market analyst on the Tokai Tokyo Research Institute, was quoted as saying.
Among exporters advancing on the yen’s retreat, Hitachi gained 1.6 p.c, whereas Sony Group added 0.7 p.c. Uniqlo clothes chain operator Fast Retailing, in the meantime, buoyed the broader market, rising 1 p.c.
Shares gaining on strong revenue stories included cosmetics maker Shiseido Co. Ltd. climbing 5.2 p.c, whereas Asahi Group Holdings Ltd. jumped 3.3 p.c.
Banking shares superior forward of the sector reporting its outcomes after the shut of buying and selling, with Sumitomo Mitsui Financial Group including 1.8 p.c, whereas Mitsubishi UFJ Financial Group gained 1.9 p.c.
SBI Shinsei Bank surged 8.5 p.c, after guardian agency SBI Holdings Inc. stated Friday it will take the lender personal via a takeover.
By the shut of play, insurance coverage, securities and meals points comprised points that gained essentially the most.
The turnover on the Prime Market on the primary buying and selling day of the week got here to three,171.52 billion yen (23.27 billion U.S. {dollars}).