Tokyo stocks close at nine-month high
14 Nov 2016 - 9:29
Tokyo: Tokyo stocks closed at a nine-month high on Monday as a weaker yen lifted exporters and traders were buoyed by upbeat Japanese growth figures as well as hopes for Donald Trump's presidency.
"The fact that the Japanese economy is in good shape is obviously a boost for stocks," Masaaki Yamaguchi, an equity market strategist at Nomura, told Bloomberg News.
"The yen weakening further is adding momentum to the move."
The benchmark Nikkei 225 index gained 1.71 percent, or 297.83 points, to 17,672.62, marking the best finish since early February. The broader Topix index rose 1.58 percent, or 21.72 points, to 1,400.00.
Official data showed Japan's economy grew a better-than-expected 0.5 percent in the third quarter, and 2.2 percent on an annualised basis, as exports offset slack consumer spending.
Expectations for Trump's administration also buoyed investor sentiment.
"The Trump-risk has subsided considerably, with odds looking likely for the president-elect to opt for more realistic policy measures," said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute.
Expectations that planned infrastructure spending will fan inflation have lit a fire under the dollar as dealers bet the Federal Reserve will eventually have to hike borrowing costs more aggressively to cap price rises.
The greenback was trading at five-month highs against the Japanese currency, changing hands at 107.58 yen on Monday afternoon.
A weaker yen is good news for the profitability and competitiveness of Japan's exporters.
Hitachi jumped 4.23 percent to 588.3 yen, Canon was up 1.78 percent at 3,029 yen and Nissan surged 3.11 percent to 995.3 yen.
Banks also extended gains, with Mitsubishi UFJ Financial Group up 1.49 percent at 617 yen.