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Tokyo stocks recover from global rout
TOKYO, Oct 12, 2018 (BSS/AFP) – Tokyo stocks rose on bargain-hunting on
Friday the day after the market joined a global rout amid lingering worries
about higher US interest rates and trade wars.
The benchmark Nikkei 225 index, which plunged nearly four percent on
Thursday, gained 0.46 percent or 103.80 points to close at 22,694.66. Over
the week, it lost 4.58 percent.
The broader Topix index edged up 0.03 percent or 0.59 points at 1,702.45.
The index dropped 5.03 percent from a week earlier.
Tokyo shares opened lower after US stocks tumbled for a second straight
session on Thursday as volatility reigned on Wall Street.
The declines — which brought major US indices to their lowest levels in
months — came as President Donald Trump repeatedly castigated the Federal
Reserve for lifting interest rates, sparking worry that the US central bank’s
independence from politics could be compromised.
But Tokyo stocks rebounded into positive territory in afternoon trade as
the yen’s decline encouraged investors to buy back shares, which faced extra
selling pressure the previous day, said Daiwa Securities senior technical
analyst Hikaru Sato.
“The weak yen helped investors regain buying sentiment following their
sweeping sell-off yesterday,” Sato told AFP.
The dollar fetched 112.39 yen in Asian afternoon trade, against 112.07 yen
in New York and 112.17 yen in Tokyo late Thursday.
A weak yen is positive for Japanese exporters as it inflates profits
earned overseas when they are repatriated.
“But volatile trading is expected to continue at least until the end of
next week as the market needs more time to regain stability,” Sato added.
In individual stocks trade, Nintendo jumped 3.49 percent to 40,000 yen and
Toyota rose 0.16 percent to 6,608 yen but Sony lost 0.47 percent to 6,258
yen.
Uniqlo operating chain Fast Retailing, which lost more than four percent
on Thursday, dropped another 2.07 percent to 56,070 yen after reporting a
record annual profit due to a forecast quarterly profit decline.
BSS/AFP/HR/1420