Nikkei hits 5-month closing high on softening yen

18:56, November 29, 2010      

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Tokyo stocks closed higher Monday on weakening yen against the U.S. dollar.

The benchmark Nikkei 225 Average index on Tokyo Stock Exchange (TSE) advanced 86.43 points or 0.86 percent from Friday's close to 10,125.99, a fresh closing high in about five months. The broader Topix index gained 7.78 points, or 0.90 percent, to 874.59.

Nearly all 33 sectors on the TSE rose on Monday. The leading gainers included the sea transport sector, the consumer finance, and rubber products sectors, while the oil and coal products, fishery and forestry, and information and communication issues were decliners. The air transport sector was flat.

Trading volume on the main section jumped to 1,729.44 million shares from 1,675.01 million on Friday.

The market obviously took clues from a softer yen against the U. S. dollar. The U.S. dollar rose from the upper 83 yen range on Friday to the lower 84 yen Monday morning in Tokyo. It was a level that had not been reached in a bout two months in Tokyo.

A softer yen served to lift major export-linked shares as many exporter shares traded higher. Shares of companies including Sony and Nissan Motor were robust on Monday, with the former surging 81 yen, or 2.8 percent, to 2,970 yen, and the latter climbing 12 yen, or 1.5 percent, to 797 yen.

Brokers said that the market will continue draw support from the weakening yen, which helped the Nikkei stand above the significant 10,000 point threshold. On investors' side, their demand for profit-taking remains strong.

The TSE's Second Section index expanded 10.32 points, or 0.50 percent, to 2,081.30 with a volume of 21.61 million shares.

Analysts said the market was still cautious about the developments on the Korean Peninsula and the debt crisis in Europe, which limited the gains.

Source: Xinhua


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