Japan Nikkei surges to 2-month high on weaker yen

23 Mar 2022 , 04:35 PM

Japan share market finished session higher on Wednesday, 23 March 2022, extending gains for seventh straight session on tracking positive lead from Wall Street overnight and yen depreciation to 121 level against greenback..

At closing bell, the 225-issue Nikkei Stock Average advanced by 816.05 points, or 3%, to 28,040.16, its highest level since Jan. 18. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained by 44.96 points, or 2.33%, to 1,978.70

Total 32 of 33 TSE issues advanced, with top performing industry categories were Precision Instruments, Electric Appliances, Transportation Equipment, Machinery, Pharmaceutical, Information & Communication, and Securities & Commodities Futures issues.

Export-oriented shares climbed up, buoyed by the depreciation of yen against greenback. A weaker yen enables exporters to earn more if they repatriate overseas profits. TDK surged 5.6% to 4,320 yen, and Fanuc was up 3%, at 21,980 yen. Toyota Motor added 4% to 2,137.0 yen, while Nissan Motor climbed 3.8% to 534.8 yen.

Mizuho Financial Group advanced 1.6% to 1,654.5 yen, after the firm said on Wednesday it had entered into a strategic collaboration with tech giant Google LLC to accelerate the Japanese companys digital transformation.

CURRENCY NEWS: The dollar climbed to the vicinity of 121 yen range on Wednesday in Tokyo for the first time since February 2016, on expectations the interest rate gap between the United States and Japan will widen as the Federal Reserve has hinted at more aggressive interest rate hikes to tackle inflation. At 5 p.m., the dollar stood at 121.06-07 yen compared with 120.76-86 yen in New York and 120.47-48 yen in Tokyo at 5 p.m. Tuesday.

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