Tokyo stocks end higher

TV camera men wait for the opening of market in front of a large screen showing stock prices at the Tokyo Stock Exchange in Tokyo, Japan October 2, 2020. REUTERS/Kim Kyung-Hoon/File Photo

Tokyo, Japan — Tokyo shares ended higher on Monday, supported by a cheaper yen against the dollar following falls on Wall Street and losses in early trade for the key Nikkei index.

The benchmark Nikkei 225 index was up 0.54 percent, or 208.18 points, to end at 38,804.65, while the broader Topix index added 0.57 percent, or 15.50 points, to 2,740.19.

READ: Tokyo stocks trade higher, helped by cheaper yen

The dollar fetched 159.71 yen, against 159.90 in Tokyo’s early hours, when the Japanese currency nearly hit a new three-decade low.

“Against the backdrop of a weakening yen, auto-linked shares like Toyota rallied across the board,” IwaiCosmo Securities said.

A cheaper yen is generally good for Japanese manufacturers as it inflates their repatriated profits, but it causes a rise in imported goods and ultimately hits household spending.

READ: Japan’s exports surged 13.5% in May, helped by cheap yen

The yen’s latest slide has put traders on intervention watch after Japan’s finance ministry spent 9.79 trillion yen ($61 billion) to prop up the yen between April 26 and May 29.

Among major shares in Tokyo, Toyota gained 2.47 percent to 3,150 yen, and Honda increased 1.68 percent to 1,688 yen.

Sony Group rose 0.89 percent to 12,925 yen and Uniqlo operator Fast Retailing was up 0.27 percent to 40,460 yen.