HomeBusinessTokyo Stocks Open Higher With Focus On Yen

Tokyo Stocks Open Higher With Focus On Yen

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Tokyo, (APP – UrduPoint / Pakistan Point News – 30th April, 2024) Tokyo stocks opened higher on Tuesday after gains on Wall Street, with focus on the Yen amid speculation of Japanese government intervention to support the currency.

The benchmark Nikkei 225 index was up 0.96 percent, or 363.31 points, at 38,298.07 in early trade, while the broader Topix index added 1.12 percent, or 30.15 points to 2,716.63.

Monday saw the yen violently – when Tokyo markets were closed for a public holiday – from a 34-year low against the dollar.

That prompted speculation that the Japanese government had intervened in the market to support the Cash for the first time since late 2022.

Tuesday in Asia, the Dollar held 156.35 yen, against 156.09 yen in New York late on Monday. On Monday, it fell to 160.17 yen before bouncing back as high as 154.54.

Prime Minister Fumio Kishida and Masato Kanda, Japan’s chief currency officer, declined to comment Tuesday on whether the government had acted.

Kanda reiterated that Japanese officials were ready to step in if there were wild speculative moves.

“We operate around the clock, so it doesn’t matter if it’s London, New York, or Wellington,” he says.

“We are taking measures based on international rules because if excessive movements due to speculation were to occur, that would have negative effects on people’s lives.”

“The Japanese market is expected to start with gains after the US market extended rallies,” Monex senior market analyst Toshiyuki Kanayama said, adding that traders were watching Chinese purchasing managers’ index data for manufacturing and non-manufacturing which n due later in the day.

Among major shares in Tokyo, Hitachi jumped 11.47 percent to 15,020 yen, after it announced a full-year net profit forecast of 600 billion yen ($3.9 billion) for the year to March 2025 and bought back shares of up to 200 billion yen.

Construction machinery maker Komatsu rose 9.85 percent to 4,684 yen after it announced it expected net sales of 3.86 trillion yen for the year to March 2025, beating the market estimate of 3.81 trillion yen.

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