Tokyo stocks close higher after upbeat US, China data

 10 Jul 2017 - 11:05

Tokyo stocks close higher after upbeat US, China data

AFP

Tokyo: Tokyo stocks closed higher Monday as upbeat US and Chinese data buoyed investor sentiment, while a weaker yen lifted exporters.

The market rallied on a strong lead from Wall Street after the US Labor Department said the world's top economy created almost 50,000 more jobs than expected in June, reinforcing the view that it is back on track.

On Monday, fresh data showed China's factory gate prices stabilised in June after slowing for three straight months.

Also, Bank of Japan governor Haruhiko Kuroda said Monday that the economy is turning to a gradual expansion but stressed policymakers will keep the current easing programme until it achieves its two percent inflation target.

His comments weighed on the yen, which is good news for Japanese shares as a cheap currency boosts exporters' profitability.

The dollar firmed to 114.21 yen from 113.91 yen in New York and 113.73 yen in Tokyo earlier Friday.

"The BoJ appears left alone on easing while other major central banks are looking to exit strategies," Masakazu Satou, senior analyst at Gaitame Online, said.

"The yen selling pressure is expected to continue for now due to the difference in interest rates," he told AFP.

Tokyo's benchmark Nikkei 225 index rose 0.76 percent, or 151.89 points, to close at 20,080.98, while the Topix index of all first-section issues was up 0.52 percent, or 8.42 points, to end the day at 1,615.48.

Nintendo jumped 3.73 percent to 36,470 yen, Sony rallied 1.71 percent to finish at 4,318 yen and Panasonic advanced 1.84 percent to 1,491.5 yen.

Toyota rose 0.49 percent and Honda gained 0.55 percent to close at 3,104 yen.