TOKYO, June 29 (Xinhua) — Japan’s benchmark Nikkei stock index ended barely greater Thursday, because the yen’s retreat towards the U.S. dollar lifted exporters, which offset some buyers opting to e book earnings.
The 225-issue Nikkei Stock Average edged up 40.15 factors, or 0.12 p.c, from Wednesday to shut the day at 33,234.14.
The broader Topix index, in the meantime, shed 2.35 factors, or 0.10 p.c, to complete at 2,296.25.
The yen was pushed decrease versus the U.S. dollar, analysts right here stated, following Bank of Japan Governor Kazuo Ueda on Wednesday saying that he was dedicated to the financial institution’s ultra-loose financial coverage, in distinction to the U.S. Federal Reserve and different main central banks’ aggressive rate of interest hike insurance policies.
The opposing insurance policies have led to a widening rate of interest hole between the Bank of Japan and different central banks, resulting in a constantly weak yen, analysts right here added.
The yen’s drop, nonetheless, was a boon to exporters who depend on a weaker yen to spice up earnings when repatriated and improve price-competitiveness in abroad markets, strategists right here stated.
“But the weakened yen served as a tailwind for the overall market after Ueda confirmed the BOJ’s unchanging dovish stance at the ECB Forum on Central Banking on Wednesday,” Toshikazu Horiuchi, an fairness strategist at IwaiCosmo Securities Co., was quoted as saying.
Export-related points gaining on the yen’s weak point included TDK including 0.6 p.c, whereas Olympus rose 2.5 p.c.
Suzuki Motor added 3.4 p.c, whereas Nissan Motor superior 4.2 p.c.
Financial-related shares gained on elevated confidence within the U.S. banking system following the Fed’s stress check. Among these, Mitsui Financial Group superior 1.3 p.c, whereas Mitsubishi UFJ Financial Group ended 3.1 p.c greater.
Chip-oriented shares rallied, with chipmaker Screen Holdings gaining 1.4 p.c, whereas semiconductor gear maker Tokyo Electron ended 2.6 p.c greater.
By the shut of play, financial institution, precision instrument and electrical equipment points comprised those who gained probably the most.
The turnover on the Prime Market on the penultimate buying and selling day of the week got here to three,803.07 billion yen (26.36 billion U.S. {dollars}).