Japanese Stocks Rise After Weaker JPY

Stocks rose for three straight sessions on the Tokyo Stock Exchange on Wednesday, helped by buying on dips amid the yen’s further weakening against the dollar.

The 225-issue Nikkei average ended up 39.63 points, or 0.25 percent, at 15,788.78. On Tuesday, the key market gauge climbed 44.04 points.

The TOPIX index of all First-Section issues gained 7.17 points, or 0.55 percent, to close at 1,306.79, after rising 0.98 point the previous day.

The Tokyo market came under selling pressure from the outset of Wednesday’s trading on the heels of overnight drops in U.S. and European equities.

Before the opening bell, the Cabinet Office said Japan’s seasonally adjusted core machinery orders, excluding orders for ships and power equipment, in July increased 3.5 percent from the previous month.

Players largely ignored the new as the figure did not deviate much from market estimates in advance, brokers said.

Stocks, however, took an upturn and swung back into positive territory by midafternoon, thanks to the dollar’s advance to top ¥106.50.

Backed by purchases of mainstay issues at low prices, the market maintained the strength for the rest of the day, though the key Nikkei average failed to hit 15,800 amid a sense of caution over higher prices, brokers said.

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza