TOKYO: Tokyo stocks have closed in positive territory after two days of losses as exporters were supported by a weak yen.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange edged up 0.07 per cent, or 14.68 points, to close at 20,488.19, while the Topix index of all first-section shares added 0.23 per cent, or 3.90 points, to 1,673.89.
Selling picked up on Thursday afternoon following sharp drops on Chinese markets and lingering concerns about an overheated Japanese market following a 12-day rally – the longest since 1988 – that ended on Tuesday.
Some investors were taking a cautious approach ahead of Friday’s closely watched US jobs report.
But the market was supported by a weak Japanese currency as the US dollar rose to 124.35 yen from 124.23 yen in New York, while the euro ticked up to 140.09 yen compared with 140.01 yen.
The common currency won support after the European Central Bank on Wednesday kept its key interest rates unchanged at record low levels and its president Mario Draghi said it would maintain its bond-buying stimulus program.
The ECB also projected eurozone inflation would reach 0.3 per cent in 2015, up from its previous forecast of flat prices, while it kept its 2016 forecast at 1.5 per cent and its 2017 forecast at 1.8 per cent.
Positive developments in the euro area led “the euro to rise against the yen,” Mitsushige Akino, executive officer at Ichiyoshi Asset Management, told Bloomberg News.
“In the short-term, this should be positive for exporting stocks.”
And there were hopes of a possible deal in Greece’s bailout talks ahead of a Friday deadline for it to repay some of its debt.
