Tokyo shares close higher on weak yen

TOKYO: Tokyo shares rose on Friday, ending two days of declines, with a cheaper yen providing support and investors brushing off a downbeat assessment of the Japanese economy.

The Nikkei 225 index added 0.77%, or 163.83 points, to 21,450.85, helping it rise 2.02% over the week.

The broader Topix index was up 0.90%, or 14.34 points, at 1,602.63, a gain of 1.92 percent from last Friday.

“Current levels of the yen are seen as a positive factor for Japanese shares,“ said Yoshihiro Okumura, general manager at Chibagin Asset Management.

The dollar fetched 111.70 yen in Asian afternoon trade, up from 111.65 yen in New York and 111.58 yen in Tokyo on Thursday.

The Bank of Japan kept its ultra-loose monetary policy in place after a two-day policy board meeting, but said the economy was struggling with “exports and production… affected by the slowdown in overseas ”.

But it also argued that the economy was “expanding moderately”.

Dealers are also keeping tabs on the -US trade talks, with Donald Trump saying Thursday that they should wrap up within four weeks and adding that “we are doing very well” in the negotiations.

In share trading Toyota jumped 1.10% to 6,615 yen after it announced it will boost its planned US investment by US$3 billion to US$13 billion over five years to boost manufacturing in multiple states.

Its rival Honda was up 1.12% at 3,057 yen while Nissan rose 0.81% to 938.5 yen.

China-related shares were also higher, with construction machinery maker Komatsu climbing 1.75% to 2,672.5 yen and industrial robot maker Fanuc rallying 1.42% to 18,895 yen. — AFP

Source: The Sun Daily

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