TOKYO: Tokyo stocks rose 0.74 percent Tuesday morning, with the Nikkei back above 20,000 thanks to a weaker yen and record-setting advances on Wall Street.
The Nikkei 225 index at the Tokyo Stock Exchange climbed 146.22 points to 20,036.49 by the break, while the Topix index of all first-section shares added 0.50 percent, or 8.10 points, to 1,634.76, levels not seen since the end of 2007.
“The impact from a weaker yen, cheaper oil and rising wages points to better earnings this fiscal year than the last,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
“On top of being in an environment where it’s easier for Japanese companies to churn out a profit, we’re seeing firms embrace the idea of returning more cash to shareholders. From a global investor’s perspective, Japanese stocks are looking very attractive.”
A weaker yen inflates the value of exporters’ repatriated income, and in turn boosts their bottom line in yen terms.
In New York the Dow and S&P 500 rallied following acquisitions in the pharmaceutical and apparel sectors and a rise in Apple.
