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Nikkei Hits 7 Year High as Yen Continues Slide

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Tokyo stocks rose Monday with the Nikkei index ending at a seven-year closing high, propelled by solid Japanese business investment data for the July-September quarter and the yen’s depreciation against the U.S. dollar.

The 225-issue Nikkei Stock Average ended up 130.25 points, or 0.75 percent, from Friday at 17,590.10. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 11.31 points, or 0.80 percent, higher at 1,421.65.

The government said just before the opening that business investment excluding spending on software rose a seasonally adjusted 3.1 percent in the third quarter from the April-June period.

The figure will be reflected in the revised gross domestic product data for the third quarter, scheduled to be released next week.

Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc., said, “There was growing hope among investors of the revised GDP data taking a positive turn,” as the preliminary report released last month showed the Japanese economy contracted an annualized 1.6 percent in the period.

The weaker yen, briefly falling into the 119 yen zone against the dollar for the first time since August 2007, also fueled expectations of further rises in exporter share prices, Nishi added.

via Mainichi

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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

@alfonso_forex

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