Tokyo’s bench­mark in­dex hits fresh one-year high

Kuwait Times - - BUSINESS -

TOKYO:

Tokyo stocks closed at a fresh one-year high yesterday, post­ing their long­est win­ning streak since mid-2015 as a slump­ing yen boosted ex­porters. But Nin­tendo dived on profit-tak­ing af­ter the re­lease of its highly an­tic­i­pated iPhone game Su­per Mario Run while traders were also wor­ried its price tag may hurt sales.

Af­ter Wed­nes­day’s Fed­eral Re­serve rate hike, the dol­lar was trad­ing around 10-month highs against the Ja­panese unit and multi-year highs against the euro. A weaker yen is gen­er­ally good for prof­its for Ja­panese firms do­ing busi­ness abroad, stok­ing de­mand for their shares. “The yen is weak­en­ing at such a speed that it looks like it’s pric­ing in three US rate hikes next year,” No­mura se­nior strate­gist Juichi Wako told Bloomberg News.

The dol­lar bought 118.03 yen yesterday against 118.17 yen in New York Thurs­day af­ter­noon, while the euro bought $1.0443 against $1.0416. The sin­gle Euro­pean cur­rency briefly fell below $1.04, hit­ting its low­est level since early 2003. The bench­mark Nikkei 225 in­dex added 0.66 per­cent, or 127.36 points, to end the day at 19,401.15, notch­ing up its ninth suc­ces­sive gainthe long­est stretch since May last year. Over the week, the Nikkei ad­vanced 2.13 per­cent.

The broader Topix in­dex of all first­sec­tion shares was up 0.52 per­cent, or 7.95 points, to fin­ish at 1,550.67. Over the week, the in­dex rose 1.66 per­cent. US hous­ing sales and durable goods or­ders for Novem­ber and a Ger­man busi­ness con­fi­dence read­ing are on tap next week, while Ja­pan’s cen­tral bank holds a two-day meet­ing from Tues­day.

Yesterday, Nin­tendo tum­bled 4.24 per­cent to close at 26,405 yen. The drop could be a sign that gamers-and in­vestors-are dis­ap­pointed by the ef­fort, although an­a­lysts said profit-tak­ing may also be at play as the fall comes af­ter a sharp run-up prior to Thurs­day’s re­lease. The most prof­itable games are free but en­cour­age users to buy extras. Canon rose 0.52 per­cent to 3,428 yen while elec­tronic parts maker Ky­ocera climbed 1.98 per­cent to 5,921 yen.

Banks also ad­vanced, with Mit­subishi UFJ Fi­nan­cial Group gain­ing 1.73 per­cent to end at 768.1 yen and Mizuo soared 2.18 per­cent to close at 224.3 yen. — AFP

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