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▼ Tokyo Stocks Edge Higher After Fed Rate Hike
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TOKYO — Tokyo’s benchmark index squeaked out another fresh high for the year on Thursday, boosted by the yen’s slide after the US Federal Reserve announced a long-awaited rate hike and said there would be more next year.
The dollar surged to fresh 10-month highs against the yen—boosting Japanese exporters—after the Federal Reserve lifted interest rates for only the second time in a decade.
The bank’s policy committee also indicated three more hikes could come next year, surprising traders who had been preparing for two.
While Tokyo stocks opened higher on the weak yen they soon lost steam as profit-taking set in before the morning close.
But things picked up in afternoon trading, with the Nikkei 225 edging up 0.10 percent, or 20.18 points, to end the day at 19,273.79, while the broader Topix index of all first-section issues rose 0.26 percent, or 4.03 points, to close at 1,542.72.
Toyota added 1.77 percent to finish at 7,156 yen and camera maker Olympus rose 0.70 percent to 4,290 yen.
Financial stocks turned down with Mizuho Financial Group falling 0.27 percent to 219.5 yen and brokerage Nomura off 0.92 percent to end at 749.4 yen.
But Hitachi rose 1.02 percent to 642.2 yen after the Nikkei business daily reported that Tokyo may arrange an aid package, including loans and state investment, totalling one trillion yen ($8.5 billion) for a British nuclear power plant project led by the firm.
© 2016 AFP
The dollar surged to fresh 10-month highs against the yen—boosting Japanese exporters—after the Federal Reserve lifted interest rates for only the second time in a decade.
The bank’s policy committee also indicated three more hikes could come next year, surprising traders who had been preparing for two.
While Tokyo stocks opened higher on the weak yen they soon lost steam as profit-taking set in before the morning close.
But things picked up in afternoon trading, with the Nikkei 225 edging up 0.10 percent, or 20.18 points, to end the day at 19,273.79, while the broader Topix index of all first-section issues rose 0.26 percent, or 4.03 points, to close at 1,542.72.
Toyota added 1.77 percent to finish at 7,156 yen and camera maker Olympus rose 0.70 percent to 4,290 yen.
Financial stocks turned down with Mizuho Financial Group falling 0.27 percent to 219.5 yen and brokerage Nomura off 0.92 percent to end at 749.4 yen.
But Hitachi rose 1.02 percent to 642.2 yen after the Nikkei business daily reported that Tokyo may arrange an aid package, including loans and state investment, totalling one trillion yen ($8.5 billion) for a British nuclear power plant project led by the firm.
© 2016 AFP
- December 16, 2016
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