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Tokyo stocks rise on weaker yen, China economy optimism
MAINICHI   | Desember 10, 2024
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This May 7, 2020 file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks rose moderately Tuesday as a weaker yen boosted exporter issues, while buying was also fueled by optimism over the Chinese economy following Beijing's signal of stronger stimulus measures next year.
The 225-issue Nikkei Stock Average ended up 207.08 points, or 0.53 percent, from Monday at 39,367.58. The broader Topix index finished 6.85 points, or 0.25 percent, higher at 2,741.41.
The gainers were led by wholesale trade, iron and steel, and electric appliance shares.
The U.S. dollar climbed to the mid-151 yen range as the yen, a safe-haven asset, was sold on receding concerns over the Chinese economy following Beijing's pledge to adopt an appropriately loose monetary policy in 2025 to spur growth, dealers said.
At 5 p.m., the dollar fetched 151.55-57 yen compared with 151.18-28 yen in New York and 150.33-35 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0548-0549 and 159.86-90 yen against $1.0548-0558 and 159.51-61 yen in New York and $1.0564-0565 and 158.81-85 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.060 percent, up 0.025 percentage point from Monday's close, as traders sold the safe-haven debt on the back of the positive prospects over China's economy.
On the stock market, export-oriented automakers and electronics gained on prospects of higher repatriated profits from a weaker yen, while companies operating in China also attracted buying.
"Investors welcomed China's plans as they are seen as strongly boosting consumption to enhance investment efficiency and stir domestic demand in various ways," said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
But investors refrained from chasing the market higher as they await Wednesday's release of U.S. inflation data for November, which is expected to influence the Federal Reserve's monetary policy decision next week, brokers said.
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