Tokyo Stocks Rally on Wall Street Rebound and Yen Depreciation
The benchmark Nikkei 225 index recorded a 0.52 percent increase, gaining 173.70 points to reach 33,625.53, while the broader Topix index saw a 0.54 percent rise, closing up 12.75 points at 2,390.94.
Karobar
In a positive turn of events, Tokyo shares closed higher on Friday, drawing confidence from a rebound on Wall Street and the slight depreciation of the yen against the dollar.
Investors showed optimism as a diverse range of shares, particularly those of exporters, experienced increased buying activity. Iwai Cosmo Securities noted, "Shares were bought across the board, led by exporters, supported by rallies in US shares (on Wednesday) and the dollar’s recovery to around 149.50 yen."
Tokyo's market had been closed for a national holiday on Thursday, coinciding with the Thanksgiving holiday in the United States. The positive momentum extended from Wall Street, where on Wednesday, the Dow Jones Industrial Average rose by 0.5 percent, the S&P 500 added 0.4 percent, and the Nasdaq Composite Index won 0.5 percent.
In late Asian trade, the dollar stood at 149.28 yen, a slight decline from 149.62 yen in London on Thursday but still higher than the 148.90 yen in Tokyo on Wednesday. Automakers experienced gains, with Toyota jumping 2.73 percent to 2,803 yen, Honda gaining 1.78 percent to 1,570 yen, and Nissan rallying 2.12 percent to 596.5 yen. Engineering firms also contributed to the positive trend, with Mitsubishi Heavy Industries soaring 6.38 percent to 824 yen, and IHI climbing 4.11 percent to 3,000 yen.
In economic news, ahead of the market opening, the government reported a 2.9 percent year-on-year increase in consumer inflation for October, primarily attributed to a reduction in energy subsidies. Excluding fresh food and energy, Japan's prices rose by 4.0 percent, according to data published by the internal affairs ministry.
