Nikkei | Image:Shutterstock
Japan’s Nikkei: Japan’s Nikkei share average surged to a record high on Friday, buoyed by robust performance on Wall Street and a depreciation in the yen, prompting investors to flock to automaker stocks.
The Nikkei climbed to a peak of 41,087.75 earlier in the trading session, marking the first time it surpassed the 41,000 level.
Despite a slight midday retreat, the index closed 0.07 per cent higher at 40,844.53.
With gains for the fourth consecutive session, the Nikkei is poised to advance by 5.5 per cent for the week.
The broader Topix also experienced a rise, climbing 0.44 per cent to 2,808.58.
Shuji Hosoi, senior strategist at Daiwa Securities, highlighted the yen’s unexpected weakness against the dollar, which benefits Japanese companies.
He attributed this trend to the anticipation of stable Japanese government bond yields and the Bank of Japan’s commitment to maintaining an accommodative monetary policy stance.
BOJ Governor Kazuo Ueda reaffirmed the central bank’s commitment to supporting the economy with loose monetary policies, following the recent termination of negative interest rates and other unconventional measures.
The yen fell to near multi-year lows against the dollar, boosting exporters as it enhances the value of overseas revenue when converted to yen.
Notably, Toyota Motor saw a 1.87 per cent increase, contributing majorly to Nikkei’s gains, while Suzuki Motor surged by 3.57 per cent.
The index for automakers rose by 1.62 per cent, reflecting investor enthusiasm for the sector.
Among other industries, tyre makers recorded the highest gains, jumping by 2.28 per cent, while chip-related stocks like Advantest slipped by 2.43 per cent and Tokyo Electron lost 0.31 per cent.
(With Reuters Inputs)
