Tokyo Shares Jump As Strong Dollar Fuels Gains In Exporter Shares
Tokyo stocks rose sharply Monday as auto and electronics exporters got a lift from the strengthening dollar, which traded comfortably above 108 yen.
The Nikkei 225 index rose 380.64 points, or 2.7 percent, to 14,354.37.
Traders said investors may chase the market higher. Exporters in particular are benefiting from the dollar’s strength as worries over inflation raise the prospects for a rate hike by the U.S. Federal Reserve. The dollar rose to 108.50 yen from 108.16 late Friday in New York.
A stronger dollar makes Japanese exports more competitive outside of Japan and lifts the value of profits from abroad.
“The Nikkei may trade above the 14,400 in the coming days,” said Hiroichi Nishi, general manager at Nikko Cordial Securities.
TDK Corp. jumped 6.2 percent to 7,240 yen and Advantest gained 5.3 percent to 2,605 yen. Toyota Motor rose 2.9 percent to 5,650 yen.
Oil shares, on the other hand, fared less well as crude prices settled lower on Friday on a report that Saudi Arabia is mulling another increase in its oil output. Inpex Holdings shed 3.8 percent to 1.28 million yen.
Glass makers were also weaker after Macquarie Securities cut its ratings on some of them. Nippon Electric Glass fell 6.2 percent to 1,975 yen after the brokerage cut its rating two notches to “underperform” from “outperform” on an expected slowdown in LCD glass demand.
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