Tokyo shares rise as in­vestors as­sess Yellen com­ments

Pakistan Observer - - ECONOMY WATCH -

TOKYO—Tokyo shares rose cau­tiously in mid-af­ter­noon trade on Tues­day as the mar­ket de­ter­mined the im­pact of com­ments by Fed­eral Re­serve Chair Janet Yellen, who said that any US in­ter­est rate hike would be grad­ual. Fed boss Yellen ex­pressed con­fi­dence in the world’s top econ­omy on Mon­day, but also sig­nalled cau­tion about rais­ing rates fol­low­ing last week’s dis­mal US jobs re­port—call­ing it “con­cern­ing”. On Tues­day, the bench­mark Nikkei 225 index climbed in thin trade as the mar­ket con­sid­ered how the Ja­panese cur­rency would be af­fected by a more grad­ual in­crease in Fed rates.

“Cur­rency moves and ex­pec­ta­tions for more pol­icy ac­tions are still the big­gest driv­ers for the Ja­panese stock mar­ket,” Toshi­hiro Hi­rao, pres­i­dent of Asuka As­set Man­age­ment, told Bloomberg News. “(Many com­pa­nies are) fore­cast­ing earn­ings based on the yen be­ing be­tween 105 to 110 per dol­lar, so if the yen starts to strengthen and we go be­low 105, we’ll have to re­vise those fore­casts again.” On Mon­day, the dol­lar re­mained in­line with pre­vi­ous ex­pec­ta­tions, ris­ing to 107.80 yen from 107.57 yen in New York, af­ter ini­tially trad­ing lower against the Ja­panese unit.

The Nikkei 225 index saw a small 0.66 per­cent rise, or 109.41 points, to 16,689.44, while the broader Topix index of all first-sec­tion shares gained 0.65 per­cent, or 8.63 points, to 1,341.06.—AFP

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