Tokyo Stocks Open Higher With Focus On Yen

Tokyo, (APP – UrduPoint / Pakistan Point News – 30th Apr, 2024) Tokyo stocks opened higher on Tuesday after gains on Wall Street, with a focus on the Yen amid speculation of Japanese government intervention to prop up the currency.

The benchmark Nikkei 225 index was up 0.96 percent, or 363.31 points, at 38,298.07 in early trade, while the broader Topix index added 1.12 percent, or 30.15 points to 2,716.63.

The yen seesawed violently on Monday — when Tokyo markets were closed for a public holiday — from a 34-year low against the dollar.

That prompted speculation the Japanese government had intervened in the market to support the Currency for the first time since late 2022.

On Tuesday in Asia, the Dollar fetched 156.35 yen, against 156.09 yen in New York late Monday. On Monday, it fell to 160.17 yen before bouncing back as high as 154.54.

Both Prime Minister Fumio Kishida and Masato Kanda, Japan‘s top currency official, declined to comment Tuesday on whether the government had acted.

Kanda reiterated that Japanese officials were ready to step in if there were wild speculative movements.

“We are operating around the clock, so it doesn’t matter whether it’s in London, New York, or Wellington,” he said.

“We take measures based on international rules because if excessive movements due to speculation happen, that would have negative impacts on people’s lives.”

“The Japanese market is expected to start with gains after the US market extended rallies,” Monex senior market analyst Toshiyuki Kanayama said, adding that traders are watching Chinese purchasing managers index data for both manufactures and non-manufactures due later in the day.

Among major shares in Tokyo, Hitachi jumped 11.47 percent to 15,020 yen, after it announced a full-year net profit forecast of 600 billion yen ($3.9 billion) for the year to March 2025 and a share buy-back of up to 200 billion yen.

Construction machine maker Komatsu soared 9.85 percent to 4,684 yen after it announced it expects net sales of 3.86 trillion yen for the year to March 2025, beating the market estimate of 3.81 trillion yen.
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