Automakers lead Tokyo stocks higher by close

Dollar rises as markets await Fed chair speech

TOKYO, Aug 24, (AFP): Tokyo stocks finished higher Wednesday with the market led by strong gains among automakers including Toyota and rival Nissan.

Investors are now awaiting a speech by US central bank boss Janet Yellen at the Jackson Hole symposium of global central bankers Friday, hoping she will shine some more light on the direction of US monetary policy.

The market won some support from forex trading, where the dollar rose to 100.38 yen from 100.23 yen Tuesday in New York. A weaker yen is a plus for Japan’s exporters as it lifts their overseas profitability.

But Tokyo share trading was thin with many investors away for the summer break.

“We’re low on investors at the end of summer and we’re also waiting for Yellen’s speech in Jackson Hole, so many don’t want to take a position in the market,” Kiyoshi Ishigane, chief strategist at Mitsubishi UFJ Kokusai Asset Management, told Bloomberg News.

At the close, the benchmark Nikkei 225 index was up 0.61 percent, or 99.94 points, at 16,597.30, rebounding from the previous day’s drop.

The broader Topix index of all firstsection shares rose 0.71 percent, or 9.15 points, to 1,306.71.

Traders appeared unfazed by a North Korean missile launch in the early hours of Wednesday.

Japanese Prime Minister Shinzo Abe said Wednesday’s missile breached his country’s Air Defense Identification Zone (ADIZ) and condemned what he called an “unforgivable, reckless act” and a grave

A man looks at an electronic stock board showing world market indexs at a securities firm in Tokyo, Japan, on Aug 24. Asian stocks meandered Wednesday as investors awaited fresh cues from Federal Reserve on the outlook for interest rates. Markets were steady following the submarine launch of a ballistic missile by North Korea. (AP)

threat to Japan’s security.

Toyota surged 2.05 percent to finish at 6,120 yen, while Nissan tacked on 2.71 percent at 972.2 yen. Honda climbed 0.75 percent to 3,089 yen and Mazda was up 1.16 percent to 1,522 yen.

Among the losers, Uniqlo operator Fast Retailing, a market heavyweight, slumped 2.67 percent to end at 35,600 yen.

The dollar rose Wednesday with the Federal Reserve’s policy plans in focus, while the South Korean won fell after the North tested a submarine-launched missile, bringing geopolitical tensions back into focus.

Traders are awaiting a speech by Fed chief Janet Yellen at the Jackson Hole symposium of global bankers Friday hoping for clues about the direction of US monetary policy.

On Wednesday, the dollar bought 100.36 yen against 100.23 yen in New York, while the euro slipped to $1.1295 from $1.1307.

The greenback has been see-sawing this week as divergent views from Fed officials have kept dealers guessing about the central bank’s plans.

“The US dollar appears to be in consolidation mode ahead of the key risk event for the week, Fed Chair Yellen’s scheduled speech at Jackson Hole,” Kymberly Martin, a currency strategist at the Bank of New Zealand, said in a commentary.

“The market has recently nudged up expectations for near-term Fed activity but still remains fairly reticent to fully price a rate hike.”