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Nikkei snaps 3-day falls on bargain-hunting, weak yen lifts autos
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TOKYO (Kyodo) -- The Nikkei stock index snapped a three-day losing streak Friday as investors bought battered shares, while a weaker yen spurred buying of export-led automakers.
The 225-issue Nikkei Stock Average ended up 107.21 points, or 0.28 percent, from Thursday at 38,642.91. The broader Topix index finished 10.42 points, or 0.39 percent, higher at 2,711.64.
On the top-tier Prime Market, gainers were led by marine transportation, mining and electric power and gas issues.
The U.S. dollar hit an around four-month high in the upper 156 yen zone in Tokyo on speculation the Federal Reserve will not rush to ease U.S. monetary policy amid firm economic data, dealers said.
It later retreated to the lower 156 yen level, as traders awaited remarks from Bank of Japan chief Kazuo Ueda on Monday for clues on further Japanese interest rate hikes.
Stocks rose on bargain-hunting after the Nikkei shed nearly 1,000 points over the past three days, with automakers gaining on prospects of higher repatriated profits from a weaker yen.
Banks and other financial issues were sought after three Japanese megabanks reported higher profits for the April-September period and raised full-year profit outlooks, as their profitability improved following the BOJ's interest rate hikes.
But gains were trimmed in the afternoon, as traders took to the sidelines to await further indications of U.S. economic policy under President-elect Donald Trump as he continues to announce Cabinet picks, analysts said.
"It makes active buying difficult," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Intelligence Laboratory Co. "While the market is concerned by tariffs under Trump, his tax cut and deregulation plans are creating hopes of U.S. growth. The question is which comes first and starts having an effect."
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