US dol­lar, Tokyo stocks rise on weak yen

The Myanmar Times - - International Business -

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

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