Tokyo shares close higher on cheaper yen, US gains

 28 Sep 2017 - 10:02

Tokyo shares close higher on cheaper yen, US gains


Tokyo: Tokyo stocks firmed Thursday, supported by a cheaper yen and tracking gains on Wall Street after President Donald Trump unveiled plans to slash corporate tax in a sweeping fiscal reform.

The bellwether Nikkei 225 index gained 0.47 percent, or 96.06 points, to 20,363.11, while the broader Topix index was up 0.71 percent, or 11.74 points, at 1,676.17.

"After the major three US index gained overnight, the Nikkei index began the day with buy orders leading the way," Okasan Online Securities said in a commentary.

"With the dollar hovering around 113 yen, the index again headed north in the afternoon session," it added.

The dollar fetched 112.99 yen, up from 112.79 yen in New York and 112.46 yen in Tokyo on Wednesday.

A cheaper yen boosts Japanese exporters as it inflates their repatriated profits and makes their goods more competitive in foreign markets.

Global investors cheered as Trump's Republican Party rolled out a plan to reform America's tax code, seeking deep cuts to corporate rates and the abolition of inheritance tax in a bid to fuel growth.

Tokyo traders were also keeping a close eye on Japanese politics as Prime Minister Shinzo Abe officially dissolved parliament, kicking off campaigning for a national election on October 22.

The political drama was yet to show a significant impact on the local market.

But Abe's rival Tokyo governor Yuriko Koike is offering a campaign promise to end Japan's reliance on nuclear power, which drove down utilities.

Kansai Electric Power, with a high reliance on atomic energy, lost 5.25 percent to 1,463 yen.

Exporters rose on the back of a cheaper yen. Game giant Nintendo added 1.76 percent to 41,570 yen and Canon was up 0.71 percent at 3,849 yen.

Toyota climbed 0.31 percent to 6,769 yen as it announced it was teaming up with its smaller partner Mazda and car parts maker Denso to set up a new company to develop electric vehicles.

SoftBank rose 0.89 percent to 9,115 yen after a report said it had overcome a major obstacle to its planned multi-billion-dollar investment in ride-share giant Uber.