iNVEZZ.com, Tuesday, September 3rd: The Nikkei 225 today surged to a three-week high, lifted by a weakened yen and positive manufacturing figures from Europe. The Japanese blue-chip index ended the day 405.52 points or 2.99 percent higher at 13,978.44. The Topix index, which includes all companies listed on the Tokyo Exchange’s First Section, rose 31.40 points or 2.81 percent to 1,149.18.
Banks led the gains with Mitsubishi UFJ jumping 5.02 percent to ¥607.00 and Mizuho Financial climbing 2.46 percent to ¥208.00.
A fall in the yen sparked a rally in exporters with Nintendo rising 4.96 percent to ¥11,860.00 and automaker Nissan and Toyota Motor gaining 3.16 percent and 3.33 percent to ¥1,012.00 and ¥6,200.00, respectively. A weaker yen makes Japanese products more competitive overseas and benefits exporters when their dollar earnings are repatriated. The Japanese currency is down by 15 percent against the greenback this year, weighed down by the Bank of Japan’s monetary stimulus programme launched in April and meant to end years of deflation and boost growth.
Tokyo Electric Power continued to reverse last week’s losses, closing 3.35 percent higher at ¥525.00 after the Japanese government pledged $500 million (₤322 million) to clean up the contaminated water at the Fukushima nuclear plant.
Upbeat factory data from Europe convinced investors on the Asian markets to move away from safe-haven assets such as gold and the yen and towards riskier assets. MSCI’s broadest index of Asia-Pacific shares excluding Japan climbed 0.3 percent, adding to yesterday’s 1.2 percent increase and on track for a fourth consecutive trading session of gains.
Australia’s S&P/ASX 200 closed 8.30 points or 0.16 percent higher at 5,196.60 after the Reserve Bank of Australia (RBA) left its benchmark interest rate unchanged at 2.5 percent. Resource stocks gained ground after the RBA’s index of commodity prices climbed to a fifteen-month peak in August. Fortescue Metals and Rio Tinto surged by 4.85 percent and 3.09 percent to A$4.54 and A$61.05, respectively. Retailers were broadly down after retail sales grew slower-than-expected in July.
The South Korean Kospi rose 8.93 points or 0.46 percent to 1,933.74 thanks to strong gains in shipbuilders. Hyundai Mipo Dockyard jumped 5.26 percent to 140,000.00 Korean won and STX Offshore & Shipbuilding surged 14.96 percent to 5,110.00 Korean won.
There was no lead from the U.S. today, as Wall Street was closed on Monday for the Labor Day holiday. On Friday, the U.S. will publish its monthly labour report, which will be scrutinised for signs whether the Federal Reserve will reduce its stimulus programme.
The Nikkei 225 was 405.52 points or 2.99 percent higher at 13,978.44 as of 03.09.2013, 08.00 BST.
The Topix was 31.40 points or 2.81 percent higher at 1,149.18 as of 03.09.2013, 08.00 BST.
The S&P/ASX 200 was 8.30 points or 0.16 percent higher at 5,196.60 as of 03.09.2013, 08.00 BST.
The Kospi was 8.93 points or 0.46 percent higher at 1,933.74 as of 03.09.2013, 08.00 BST.
Source Article from http://invezz.com/news/equities/5248-nikkei-225-watch-hitting-three-week-high
