Tokyo stocks see highest finish since August

TOKYO—Tokyo stocks rose almost one percent to close Wednesday at their highest level in six-and-a-half months as exporters were boosted by a sliding yen.

The Nikkei 225 index at the Tokyo Stock Exchange rose 0.96 percent, or 90.98 points, to 9,554.00, its strongest finish since August 4, while the Topix index of all first-section issues was up 1.12 percent, or 9.11 points, at 825.40.

Exporters were the main beneficiaries of the yen’s slide. The dollar strengthened to 80.04 yen from 79.69 yen in New York late Tuesday, breaking through the psychological 80.00 yen level against the Japanese unit.

The yen also skidded to 105.98 versus the euro, from 105.50.

A weaker yen improves the competitiveness of Japanese exports by making them relatively less expensive in overseas markets while boosting the value of firms’ repatriated earnings.

The Nikkei’s strength was likely to continue through the end of the month, “while overall market sentiment will likely stay bullish,” Nobuyuki Kashihara of Mizuho Asset Management told Dow Jones Newswires.

The gains came as positive sentiment stoked by Tuesday’s agreement for a 237-billion-euro ($310 billion) Athens bailout subsided, with dealers fearing Greece still faces a struggle in sticking to tough reforms.

Market-watchers also said global indices were broadly unmoved by the announcement from Brussels as the agreement had already been factored in during previous sessions.

Among major gainers at the Tokyo bourse, Honda Motors added 2.07 percent to 2,996 yen, Sony rose 1.50 percent to 1,682 yen and Mitsubishi UFJ Financial Group added 0.98 percent to 411 yen.

Olympus, mired in a cover-up scandal, jumped 5.04 percent to 1,375 yen, helped by reports that a new management team was being put together.

Tokyo Electron lost 1.02 percent to 4,350 yen following a report that semiconductor makers are bracing for a decline in orders for January-March, while Canon shed 0.69 percent to 3,585 yen after a recent rally.