Japanese stocks climbed on Monday trading as yen rebounded from its two-month low against the US dollar.
Naoteru Teraoka, general manager at Chuo Mitsui Asset Management, said that the Japanese currency is supporting the Japanese stocks on stock market trading Monday. He said that Japanese stocks are still hiding behind as people had sold stocks on concern about earnings because of the yen’s increase.
The yen declined to 84.20 against the dollar on Monday in Tokyo, matching its rate in New York on November 26 and the lowest level since end of the third quarter this year. However, a weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency.
The Nikkei 225 Stock Average soared 0.9 percent to 10,125.99 at 3 p.m. in Tokyo, which is considered the highest level since June this year. The Nikkei fell as much as four percent earlier this year with gains of 6.6 percent for the Standard & Poor’s 500 Index in the US and five percent for the Stoxx Europe 600 Index. Based on the Japanese gauge, stocks are valued at 17.7 times estimated earnings on average compared with 14 times for the S&P 500 and 11.9 times for the Stoxx Europe 600 Index. On the other hand, broader Topix index rose 0.9 percent to 874.59 with more than three times as many stocks advancing as regressing.
Meanwhile, Nissan Motor, Japan’s third largest carmaker by sales and have as much as 75 percent of its revenue abroad rose 1.5 percent. Taiheyo Cement, the nation’s biggest cement maker by sales, increased by 3.9 percent after the Nikkei official gazette said that the company’s profit will likely to jump. Sony, an electronic maker, and Marubeni, a trading company, rose at least 2.5 percent on higher brokerage ratings.
