Tokyo, Japan’s Nikkei share average reversed early losses to end higher on Friday, as investors bought back beaten-down stocks with the yen weakening against the dollar.
The Nikkei rose 0.59% to close at 25,973.85, after opening lower following Wall Street’s weak finish overnight. The index lost 0.46% for the holiday-shortened week, Reuters reports.
Wall Street’s main indexes lost more than 1%, with the Nasdaq leading the declines, as evidence of a tight labour market eroded hopes that the Federal Reserve could pause its rate hike cycle anytime soon as it stays focused on taming inflation.
The broader Topix rose 0.37% to 1,875.76 and lost 0.84% for the week.
“The yen’s gain against the dollar since the Bank of Japan’s policy tweak weighed on investor sentiment but the trend changed yesterday,” said Chihiro Ohta, assistant general manager of investment research and investor services at SMBC Nikko Securities.
“Some investors bought back shares as some of those stocks looked cheap amid the yen’s decline.”
Nikkei’s heavyweights lifted the index, with chip-making equipment maker Tokyo Electron rising 3.51% and technology investor SoftBank Group climbing 1.24%. Drugmaker Daiichi Sankyo climbed 3.51%.
Sony Group rose 2.41% and Honda Motor gained 1.93% after the chairman of Sony Honda Mobility said their year-old electric-vehicle joint venture is in early discussions about a potential stock offering to raise cash.
Shipping firms jumped 3.27% to become the best performer among the 33 industry sub-indxes on the Tokyo Stock Exchange. Energy explorers rose 2.42%.
Fast Retailing, the owner of Uniqlo clothing brand, lost 0.15%.
The property sector fell 1.18% and was the worst performer among the industry groups.
Source: Bahrain News Agency