Nikkei hits four-month high on weaker yen
SINGAPORE: Japan's Nikkei share average touched a four-month high on Wednesday, boosted by a weaker yen even as investors kept a wary eye on the rapidly escalating conflict between Israel and Iran.
The Nikkei ended the day up 0.9% at the session's high of 38,885.15, a level last seen on February 20. The broader Topix rose 0.8%.
The biggest boost to the Nikkei came from Uniqlo-brand owner Fast Retailing, chip-testing equipment maker Advantest and Switch-maker Nintendo, which rose 2%, 1.2% and 6.6%, respectively.
'Japan remains one of our favoured equity markets,' said Ben Powell, chief APAC investment strategist at the BlackRock Investment Institute.
'Ongoing shareholder-friendly reforms to boost profitability support our tactical overweight on Japanese stocks,' he said. 'We prefer unhedged equity exposures, given the yen's tendency to strengthen during periods of market stress.'
The Nikkei steadily extended its advance as the day progressed despite heightened worries among market participants over the potential for a more direct US military involvement in the Middle East.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
15 hours ago
- Business Recorder
Japan's Nikkei trades lower as uncertainties in Middle East conflict weigh
TOKYO: Japan's Nikkei share average reversed early gains to trade lower on Friday as geopolitical risks surrounding the Middle East conflict weighed on sentiment. As of 0208 GMT, the Nikkei was down 0.1% at 38,442.36, after rising as much as 0.4% earlier in the session. The index is set to rise 1.6% for the week. The broader Topix fell 0.29% to 2,784.02 but is on course to post a 1% weekly gain. 'With the absence of market-moving catalysts, uncertainties surrounding the Middle East tensions dragged investor sentiment,' said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities. The White House said on Thursday that US President Donald Trump will make a decision within the next two weeks whether to support Israel in its ongoing conflict with Iran. 'On top of the uncertainties about the conflict in the region, the outlook of the US tariff plans remains unclear,' said Arisawa. Uniqlo-brand owner Fast Retailing fell 2.1%, dragging the Nikkei the most. Game maker Konami Group lost 1.7%. Department store operator Retailing fell 2.87% to become the worst performer of the Nikkei. Nikkei hits four-month high on weaker yen Chip-testing equipment maker Advantest jumped 4.6% to become the biggest support to the Nikkei. Chip-making equipment maker Tokyo Electron reversed early gains to trade 0.25% lower. Machinery maker Amada rose 5% to become the top performer of the Nikkei. Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 37% rose and 57% fell, while 4% traded flat.
Business Recorder
20 hours ago
- Business Recorder
Japanese rubber futures snap four-day rally on softer China demand
SINGAPORE: Japanese rubber futures snapped a four-day winning streak on Thursday as demand slowed for the tyre-making material in top consumer China, outweighing supply woes sparked by wet weather. The Osaka Exchange (OSE) rubber contract for November delivery closed down 6.7 yen, or 2.2%, at 298.3 yen ($2.05) per kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery inched up 30 yuan, or 0.21%, to 14,030 yuan ($1,951.21) per metric ton. The most active July butadiene rubber contract on the SHFE edged up 110 yuan, or 0.94%, to 11,770 yuan ($1,636.90) per metric ton. On the demand front, the operation rates of tyre companies is low given high inventories and the current off season, said Chinese rubber sales portal Natural Rubber Network. Capacity utilisation rates of semi-steel tyre enterprises this week fell 10% from the same period last year, according to Chinese commodities data provider Longzhong Information. Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. Meanwhile, banks in China's Henan province said on Tuesday they will stop giving car dealers high commissions for auto loans taken out by buyers.
Business Recorder
a day ago
- Business Recorder
Volatility at PSX, KSE-100 sheds nearly 500 points
A volatile session was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index swinging both ways, settling lower by nearly 500 points on Thursday. Trading at the bourse began on a positive note, with the benchmark KSE-100 Index hitting an intra-day high of 121,745.30. However, selling pressure propelled by rising regional tensions dragged the benchmark index to an intra-day low of 119,770.03. At close, the benchmark index settled at 120,002.59 level, a decrease of 463.34 points or 0.38%. In a key development, United States President Donald Trump on Wednesday said that he was 'honoured' to meet Field Marshal Syed Asim Munir for talks at the White House — also marking the first time a US president has hosted army chief at the White House unaccompanied by senior civilian officials. The lunch is being seen in Islamabad as a major diplomatic win, particularly because earlier this month, an Indian delegation met US Vice President JD Vance and Indian media depicted it as a diplomatic success, contrasting it with the apparent inability of the Pakistani delegation to secure a similar meeting. Moreover, the Federal Reserve held interest rates steady on Wednesday and policymakers signalled borrowing costs are still likely to fall this year, but slowed the overall pace of expected future rate cuts in the face of estimated higher inflation flowing from the Trump administration's tariff plans. On Wednesday, bearish sentiments prevailed at the PSX, with the benchmark KSE-100 Index settling at 120,465.93, amid a loss of 1,505.11 points. Internationally, stock markets in Asia edged lower on Thursday while safe havens such as gold and the Japanese yen gained as investors remained on edge over the possible entry of the United States into the week-old Israel-Iran air war. President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, 'I may do it. I may not do it.' The Wall Street Journal said Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme. Japan's Nikkei sank 0.8%, with additional downward pressure stemming from a stronger yen, which reduces the value of overseas revenues for the country's heavyweight exporters. Taiwan's stock benchmark slid 0.9%, and Hong Kong's Hang Seng declined 0.8%. US S&P 500 futures pointed 0.4% lower, although most US markets - including Wall Street and the Treasury market - are closed on Thursday for a national holiday. Brent crude edged down to $76.32 per barrel, but remained not far from the 4-1/2-month peak of $78.50 reached on Friday. The yen gained 0.2% to 144.92 per dollar, while the US currency itself was also in demand as a haven, gaining 0.1% to $1.1472 per euro and 0.2% to $1.3398 versus sterling.
