Nikkei Closes Near 7 Year Low on Weak Yen

Tokyo stocks closed higher Thursday, with the Nikkei ending at the highest level for nearly seven years, as the U.S. dollar’s firmness in the lower 109 yen zone boosted exporter shares.

The 225-issue Nikkei Stock Average ended up 206.69 points, or 1.28 percent, from Wednesday at 16,374.14, its best finish since Nov. 2, 2007. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 20.25 points, or 1.53 percent, higher at 1,346.43.

The Tokyo market got off to a solid start on the heels of a rise in U.S. stocks on Wednesday due to positive U.S. new home sales data for August.

“Despite caution over geopolitical risks (related to U.S.-led airstrikes in Syria), the U.S. economic recovery is accelerating, leading investors to expect that the stronger dollar trend will continue,” said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc.

The dollar’s strength in the 109 range zone raised expectations of an improvement in exporters’ business performance, Nishi added.

via Mainichi

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