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Japanese stocks rise, led by electronics shares on weaker yen

Japanese stocks rise, led by electronics shares on weaker yen

Japanese stocks rose Thursday as investors bought blue chip electronics makers due to the yen's fall against the dollar.
The Nikkei 225 added 140.99 points, or 0.9 percent, to reach 16,153.82 points on the Tokyo Stock Exchange. Wednesday, the index lost 1.7 percent.
Traders said, however, the market remains volatile as blue chip shares tend to be vulnerable to currency movements. Once the dollar falls below 115 yen, major export-sensitive shares are hammered first, they said.
Trading was light, with turnover on the exchange's first section totaling a sparse 1.523 billion shares.
Investors will likely stay on the sidelines until after the Friday release of Japanese economic data such as industrial production and the consumer price index, traders said. Investors are also awaiting Federal Reserve Chairman Ben Bernanke's speech Friday, they said.
"The market may not be stimulated by the CPI data unless the result greatly outperforms market expectations," said Hiroaki Kuramochi, head of the cash equities department at Bear Stearns in Tokyo.
Technology shares climbed on a weaker yen, which helps inflate overseas earnings and makes exports less expensive. Sony Corp. rose 1.15 percent to 5,290 yen (US$46; euro33.75). Nikon Corp. added 2.31 percent to 3,550 yen (US$30.87; euro22.65).
Oil and trading company shares also advanced, with Showa Shell Sekiyu K.K. climbing 5.64 percent to 1,368 yen (US$11.90; euro8.73) and Sumitomo Corp. gaining 1.87 percent to 1,908 yen (US$16.59; euro12.17).
The broader Topix index, which includes all shares on the exchange's first section, rose 10.68 points, or 0.69 percent, to 1,568.23 points. The Topix fell 1.71 percent the previous day.
The U.S. dollar was trading at 115.26 yen midafternoon, up from 114.88 yen late Wednesday in New York. The euro rose to US$1.3655 from US$1.3645.


Updated : 2021-07-25 14:49 GMT+08:00