Japan Nikkei rises as yen hits fresh 24-year low

14 Jul 2022 , 04:30 PM

Japan share market finished higher for second straight session on Thursday, 14 July 2022, as the yens depreciation to 139 level against the dollar helped spur bargain hunting in export-oriented shares. The yen depreciated to a fresh 24-year low at the 139 level against greenback on Thursday, as a stronger than expected US consumer price index raised prospects of aggressive rate hikes by the US Federal Reserve. At closing bell, the 225-issue Nikkei Stock Average added 164.82 points, or 0.62%, to 26,643.39. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 4.28 points, or 0.23%, to 1,893.13. Total 23 of 33 TOPIX sectoral sub-indexes advanced, with Fishery, Agriculture & Forestry, Marine Transportation, Precision Instruments, Electric Appliances, Mining, and Iron & Steel issues being notable gainers, while Electric Power & Gas, Banks, and Air Transportation issues were notable losers. Shipping firms surged, with Mitsui O.S.K. Lines rising 2.4% and Kawasaki Kisen climbing 3.9%. Panasonic Holdings rose 0.7% after the battery maker said it had selected Kansas as the site for a new electric vehicle battery plant. CURRENCY NEWS: The yen continued to fall against the U.S dollar Thursday in Tokyo, hitting a fresh 24-year low at the 139 yen level, as a stronger-than-expected U.S. consumer price index raised prospects of aggressive rate hikes by the Federal Reserve. Dollar-buying by domestic importers for settlement purposes also pushed the yen down. The Feds move would result in a further widening of the interest rate gap between the United States and Japan as the Bank of Japan remains committed to powerful monetary easing and to conducting bond-buying operations to keep interest rates near zero. The BOJ is expected to maintain ultra-low interest rates at its next meeting, from July 20 to 21, highlighting a growing divergence with a global wave of rate-hiking central banks that has fueled the yens slump. At 5 p.m., the dollar stood at 139.10-11 yen, up from 137.04-04 yen at the same time on Wednesday.Powered by Capital Market – Live News