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Tokyo stocks close higher encouraged by upbeat US data
TOKYO, June 4, 2018 (BSS/AFP) – Tokyo stocks closed higher on Monday
supported by brisk US jobs growth and manufacturing data that boosted Wall
Street.
The benchmark Nikkei 225 index closed up 1.37 percent or 304.59 points at
22,475.94, while the broader Topix index ended the session up 1.46 percent or
25.52 points at 1,774.69.
US President Donald Trump’s announcement Friday that he will meet North
Korean leader Kim Jong Un on June 12 as scheduled was also supporting the
Japanese market, analysts said.
The dollar fetched 109.66 yen in Asian trade, against 109.50 yen in New
York.
“With the healthy condition of the US economy confirmed, the US Federal
Reserve is certain to hike its policy rate,” said Masayuki Kubota, chief
strategist at Rakuten Securities.
“A rate hike is a double-edged sword, as the widening of the interest rate
gap would produce a cheaper yen, while an interest rate hike would weigh on
global share prices,” he said.
Analysts said financial markets were experiencing “a moderate temperature”
with good US jobs numbers balanced by slow salary growth, dampening fears of
a faster pace for rate hikes.
For this week, however, uncertainties about the political situation in
Italy and Spain, as well as lingering concerns over US protectionist trade
policy, could weigh on the market, said Daiwa Securities strategist Tsuyoshi
Nomaguchi.
“Investors are seen taking to the sidelines to see the outcome of the
summit between Japan and the US” later this week, Yoshihiro Ito, chief
strategist at Okasan Online Securities, added.
In Tokyo, Toyota rallied 3.91 percent to 7,401 yen after a brokerage firm
upgraded its value-evaluation and the carmaker said it was merging its
electronic components production with group firm Denso.
Nintendo tumbled during Monday trade, closing down 6.31 percent to 40,470
yen, after surges last week when it announced plans to introduce its Pokemon
series to its Switch console.
Sony closed up 3.04 percent at 5,319 yen and Mitsubishi UFJ Financial
ended up 2.44 percent at 682.5 yen.
BSS/XINHUA/HR/1250