Tokyo stocks rise sharply on weaker yen, strong Asian markets

2021-10-15 10:36:01 GMT2021-10-15 18:36:01(Beijing Time) Xinhua English

TOKYO, Oct. 15 (Xinhua) -- Tokyo stocks finished sharply high on Friday, as the U.S. dollar against the Japanese yen rose over the 114 yen line, which attracted buying on exporters and boosted the Nikkei index to a two-week high.

The 225-issue Nikkei Stock Average finished 517.70 points, or 1.81 percent, higher from Thursday at 29,068.63, its highest close since Sept. 30.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 36.96 points, or 1.86 percent, higher at 2,023.93.

Trading volume on the main section decreased to 1,143.20 million shares from Thursday's 1,152.66 million shares.

Tracking overnight advances in the U.S. market, both Nikkei and Topix indexes opened high in the morning and continued an upward momentum throughout the day, with the Nikkei rising over 500 points to retake the 29,000 benchmark. A weaker yen and strong performances in other Asian markets in the afternoon also fueled market sentiment, brokers said.

The U.S. dollar against the Japanese yen jumped to the lower 114 yen range from the upper 113 yen level after a lower figure of new applications for unemployment benefits in the United States evoked expectations for higher interest rates in the United States., dealers said.

Yuji Saito, head of the foreign exchange department at Credit Agricole Corporate and Investment Bank in Tokyo, said, "An improvement in the U.S. employment conditions is expected to spur economic recovery, while a divergence in economic policies between the United States and Japan may push up the U.S. dollar further."

The U.S. producer price index in September grew from the previous month slower than market expectations. The data released concerns over rapid inflation and lifted the Tokyo stock market as well, brokers said.

By the close of play, every sector gained ground with machinery, electric machinery, and metal product issues heading the uptrend. Advancing issues outnumbered declining ones 1,989 to 155 on the First Section, while 40 finished unchanged.

Technology firms were boosted after Taiwan Semiconductor Manufacturing Co. (TSMC) said Thursday it planned to build a chip-making factory in Japan in 2022 and start operating in 2024. It could possibly ease semiconductor shortages.

Sony Group, which is set to jointly run the chip-making factory with TSMC, climbed 2.7 percent, and auto parts maker Denso, which reportedly might join the project, jumped 3.3 percent.

Exporters rose strongly with the yen weakening against the U.S. dollar. Among them, electronics manufacturer Panasonic ended up 2.0 percent, while automakers Mitsubishi Motors and Nissan Motor increased 4.5 percent and 1.3 percent, respectively. Enditem