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The Tokyo Stock Exchange closed higher on Monday, with trading marked by high roles of exporting companies amid rising dollar. The Nikkei index returned to positive field in the year after rising by 0.5%, to 16310.64 points.
The American currency was traded at the close of the session, to 109.63 yen from 109.02 yen at the same time on Friday. The high dollar is favorable to Japanese exporters, who now have more competitive prices for the sale of products and a better exchange rate to repatriate profits.
“The dollar remains high bias and should reach 110 yen soon, “the fund manager Mitsushige Akino, of Ichiyoshi Investment. For the economist, the exchange rate should depend on the data coming from the labor market of the United States. If the economy shows signs of improvement, the relationship between the dollar and the yen would rise faster and the Tokyo Stock Exchange must also register gains, believes Akino.
For the chief strategist at Nomura rates table Securities, Yunosuke Ikeda, the movements of the Japanese pension funds should also affect the dollar. The market expects the government to start already in October a more aggressive move in the management of resources of about 1.2 trillion yen administered by state funds. The expectation gives a bias of long-term high dollar.
Among the major exporters, Daikin was up 1.7%, while chip maker Advantest rose 2.7%. SoftBank’s actions, however, fell 1.2% after the news of negotiations for the acquisition of DreamWorks Animation. Investors viewed the move as an indication that the bank may be no options to grow through acquisitions when trying to invest in the entertainment industry. Source: Dow Jones Newswires
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