Japanese stocks rose as investors saw relief in Federal Reserve Bank of New York President William Dudley’s comments and a global technology sector rebound continued amid depreciation in the yen.
Dudley aligned himself with Chair Janet Yellen on Monday and declared his expectation that a tight labor market will eventually trigger a rebound in inflation data that has been unexpectedly weak in recent months. The yen fell 0.6 percent against the dollar over two days, boosting electronics makers including Murata Manufacturing Co. and Panasonic Corp. The Topix index climbed for a third day, to its highest level since August 2015.
“We’ve seen some unimpressive economic data recently but Dudley appears unperturbed by them, providing relief for market participants,” said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities Co. in Tokyo. “With buying interest returning to technology shares in the U.S., it’s likely for Japanese counterparts to attract investors.”
- Topix +0.7% to 1,617.25 at close in Tokyo
- Nikkei 225 +0.8% at 20,230.41
- Yen slightly weaker at 111.55 per dollar after 0.6% drop Monday
- Askul +8.9%; posts preliminary full-year operating profit 8.8b yen vs earlier forecast 8b yen
- Kajima +2.4%, Shimizu +1.9%; Japan builders set for profit growth as margins expand, CS says
- Kobayashi Pharmaceutical -2%; cut to underperform from neutral at Mizuho
- Sharp +7.7%; to apply for TSE1 on June 29
- Takata -20%; slides by daily limit for 2nd day after reports it plans to file for bankruptcy
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