TOKYO: Japanese stocks led Asian markets mostly higher in early Monday trading, helped by a higher dollar, which fueled buying in export-related shares.
The Nikkei Stock Average was up 0.6% at 20,388.99, refreshing a 15-year high, while Singapore’s ST was also up 0.2% at 3457.42. In Australia, the S&P/ASX200 rose 0.7% at 5706.90, and New Zealand’s NZX50 was higher by 0.4% to 5801.838.
Korean and Hong Kong markets are closed for the Buddha’s Birthday holiday.
A stronger dollar is seen helping exporters across the regional. Against the yen, the greenback continues to ratchet higher, and is now at ¥121.68. The dollar has added nearly 2.0% versus the Japanese currency since end-April.
“The recent Japan market advance is being fueled as much by foreign investor interest as it is by domestic interest,” says Yoshihiro Okumura, general manager at Chibagin Asset Management. “The upside in terms of earnings growth potential as well as total return on equity (ROE) remains higher for Japan shares than other developed markets. The more traditional weak-yen incentive simply functions as an added sweetener.”
The Topix index of all the Tokyo Stock Exchange First Section issues set an all-time high in terms of market capitalization on Friday at ¥591.3 trillion.
