TOKYO: Tokyo stocks ended on Wednesday morning higher as a weaker yen boosted exporters, reversing initial losses fuelled by ongoing worries about China’s economic woes that caused volatility in global markets.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange, which fell 1.67 percent at the start, rose 0.79 percent, or 143.74 points, to 18,309.43 by the break, while the Topix index of all first section shares was up 0.21 percent, or 3.13 points, at 1,481.24.
“I can’t see the signs of the sell-off being over. But after big drops, some investors are going to be looking to buy, and others will be covering their short positions,” Chihiro Ohta, general manager at SMBC Nikko Securities, told Bloomberg News.
Traders took heart from a rise in the greenback, which hit 120.01 yen in Tokyo, up from 119.51 yen in New York late Tuesday. A weaker yen is a plus for the profitability of Japanese exporters.
Tokyo shares fluctuated in morning trade after US stocks lost nearly three percent Tuesday in reaction to a Chinese gauge of factory activity hitting its lowest level in three years in August, indicating the sector was contracting.
The Dow ended was down 2.84 percent, while the S&P 500 lost 2.96 percent and the Nasdaq gave up 2.94 percent.
In Japanese share trading Wednesday, automaker Toyota rose 1.40 percent to 7,098 yen and market heavyweight Fast Retailing, operator of the Uniqlo chain, jumped 3.08 percent to 48,945 yen but mobile carrier SoftBank slipped 0.37 percent to 6,827 yen.
