JAPAN TODAY

 

HONG KONG — Tokyo stocks made solid gains Wednesday on the back of rising oil-linked counters, while elsewhere in the region trade was lackluster after a weak lead from Wall Street.

The advance on Japan’s main index, which was up 0.7% shortly after the break—snapping two sessions of decline—also came as a halt in the yen’s rally lifted exporters—making them more competitive overseas. The dollar picked up against the yen Wednesday after comments from a senior US central banker suggested an interest rate hike could possibly come as early as next month.

The greenback rose to 100.54 yen from 100.30 yen in New York, where it briefly touched as low as 99.54 yen, falling under the 100 level for only the second time this year.

Investors gave a mixed response to China’s approval of plans to link trading between the Shenzhen and Hong Kong stock exchanges, with Shanghai down by mid-morning but Hong Kong gaining ground.

In New York, all three major indices moved off record highs Tuesday after William Dudley, head of the Federal Reserve’s New York branch, said a rate hike was possible next month and that Wall Street was too “complacent” about the prospect of higher rates over the next year.

On other stock markets, Sydney, Seoul and Taipei were all weaker.
“Considering how much the yen has strengthened, Japanese shares are showing resilience,” Chihiro Ohta, a senior strategist with SMBC Nikko Securities, told Bloomberg News.

In Asia trade, the greenback rose to 100.60 yen from 100.30 yen in New York, but was still well below levels of over 102 yen seen last week. 


© 2016 AFP