Tokyo Stocks up by Break on Weaker Yen, Oil Prices
Tokyo stocks rose again Tuesday morning as a weaker yen brightened the outlook for exporters' profits while a slide in oil prices lifted airline shares.
The gains came after bargain-hunting investors on Monday pushed the Japanese market into the black after six straight losing sessions.
"I expect investors to keep buying back," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
"We're more likely to see a weakening yen this week. Earnings aren’t as bad as expected," he said.
The benchmark Nikkei 225 index was up 1.50 percent, or 243.89 points, to 16,459.92 by the lunch break, while the Topix index of all first-section shares rose 1.57 percent, or 20.50 points, to 1,327.16.
The dollar continued to trend higher, buying 108.58 yen, up from 108.34 yen in New York overnight and 107.39 yen on Monday in Tokyo.
"Two developing macro themes are set to dominate markets in the near term: the continued gain in the dollar and the pullback in the oil price," Angus Nicholson, a markets analyst at IG in Melbourne, said in a client note.
Oil extended losses from the lowest close in two weeks as wildfires in Canada moved away from the main producing facilities and amid forecasts for U.S. stockpiles to expand from the highest level since 1929.
Shares of energy explorer Inpex fell 0.60 percent to 822.5 yen, while carrier All Nippon Airways' parent jumped 2.40 percent to 332.5 yen and Japan Airlines rose 2.44 percent to 4,032 yen.
Exporters extended a rally fuelled by the weaker Japanese currency, which inflates the value of profits earned overseas.
Sony was up 2.57 percent to 2,670.5 while Toyota climbed 1.48 percent 5,636 yen.
Troubled airbag producer Takata plunged 6.76 percent after it announced it expected a 13 billion yen ($120 million) loss for the fiscal year ended in March.
Source: Agence France Presse
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