Japanese Stocks Rise on Weak JPY and Tax Hike Delay News

Tokyo stocks rose Monday, with the Nikkei index climbing above the 17,000 line for the first time in roughly a month, on the yen’s depreciation and the growing likelihood that a planned consumption tax hike next year will be delayed.

The 225-issue Nikkei Stock Average ended up 233.18 points, or 1.39 percent, from Friday at 17,068.02, a roughly one-month high. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 16.08 points, or 1.19 percent, higher at 1,366.01.

Every industry category on the main section except air transportation, and iron and steel issues gained ground, led by pulp and paper, transportation equipment, and glass and ceramic product issues.

Tokyo stocks remained on a solid note throughout the day as the yen fell against the U.S. dollar.

On Friday at an event at Harvard University, U.S. Federal Reserve chair Janet Yellen said an interest rate rise would be appropriate in the “coming months” if the U.S. economy continued to improve.

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 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