Japanese shares extend gains as softer yen lifts exporters


An electronic stock board showing the Nikkei 225 Stock Average figure displayed inside the Kabuto One building in Tokyo, Japan, on Thursday, June 1, 2023. index. - Bloomberg

TOKYO: Japanese stocks climbed for a second straight session on Thursday, as a softer yen boosted exporters while tech shares resumed a rally after traders assessed the prospects of further investments in the chip industry.

Shares of Nissan Motor jumped 3.5% as the yen trading near the weakest in more than seven months boosted the value of its overseas sales. Rival Mazda Motor climbed 1.42%

Chip industry heavyweights Tokyo Electron and Advantest surged more than 3% each.

The Nikkei share average rose 0.47% to 33,348.49 by the midday break, while the broader Topix was flat at 2,299.22.

The yen depreciated rapidly in recent days as the Bank of Japan signalled it will maintain its ultra-easy stimulus for now, while other major central banks are on a tightening trajectory.

Japan's currency slid to 144.62 per dollar on Wednesday for the first time since Nov. 10, nearing levels that prompted the government to intervene last year to prop up its currency.

"For the companies who are doing business outside the country, their profit is just continuing to inflate due to the yen's depreciation, which is positive for the stock price," said Tohru Sasaki, the head of Japan Markets Research at JPMorgan Chase Bank.

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Foreign investors turned net sellers of Japanese equities after 12 straight weeks of purchases, official data showed on Thursday. The inflows have helped drive a 21% gain in the Nikkei over the past three months, outpacing global indexes.

There were 90 advancers in the Nikkei against 131 losers. Nippon Telegraph And Telephone was among the steepest decliners, sliding 3.69% ahead of a 25-for-1 stock split.

Precision machinery makers added 1.34% to become the best performer among the Tokyo Stock Exchange's 33 industry sub-indexes. Paper and pulp companies were the biggest losers, declining 2.37%. - Reuters

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Japan , Nikkei

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