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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