US dollar, Tokyo stocks rise on weak yen
THE US dollar traded in the mid110 yen range early Wednesday in Tokyo, up slightly from its overnight levels in New York.
At 9 a.m., the dollar fetched 110.46-50 yen compared with 110.3242 yen in New York and 110.31-33 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.17461748 and 129.75-76 yen against $1.1740-1750 and 129.60-70 yen in New York and $1.1793-1795 and 130.09-13 yen in Tokyo late Tuesday afternoon. In New York, the dollar drew buying on a rise in U.S. Treasury yields following an increase in the U.S. consumer price index for May before turning range-bound.
Tokyo stocks ended higher Wednesday as exporters were helped by a weaker yen, while investors refrained from active trading ahead of the outcome of the U.S. Federal Reserve’s monetary policy meeting.
The 225-issue Nikkei Stock Average ended up 88.03 points, or 0.38 percent, from Tuesday at 22,966.38. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 7.55 points, or 0.42 percent, higher at 1,800.37.
Gainers were led by marine transportation, real estate and service issues.
Shares rose for the third consecutive day, with the Nikkei index ending at a fresh three-week high, as the U.S. dollar strengthened in the upper-110 yen range, benefiting large manufacturers operating abroad and financial institutions investing in dollar-denominated assets.
“Traders bought stock futures in tandem with the yen’s retreat against the dollar and that triggered further buying of Nikkei heavyweights such as Toyota,” said Mitsuo Shimizu, equity strategist at Japan Asia Securities Co.
But investors refrained from actively trading as most market players awaited the result of the Fed’s two-day meeting through Wednesday for any hint as to whether the U.S. central bank will raise interest rates at a faster pace than earlier thought.
“A rise in long-term U.S. Treasury yields would prompt yen selling...eventually boosting Japanese stocks,” said Maki Sawada, vice president of the investment research and investor services department at Nomura Securities Co.
On the First Section, advancing issues outnumbered declining ones 1,286 to 703 while 100 ended the day unchanged. Among exporters, Toyota rose 99 yen, 1.3 percent, or 7,496 yen. Technology issues also advanced after the tech-heavy Nasdaq index hit another record-high overnight in New York.
SoftBank Group rose 226 yen, or 2.8 percent, to 8,383 yen, while semiconductor equipment maker Tokyo Electron climbed 25 yen, or 0.1 percent, to 20,410 yen.
Trading volume on the main section fell to 1,198.57 million shares from Tuesday’s 1,238.09 million shares. – Kyodo