Tokyo Shares Rise, Fujitsu Jumps On PC Merger Report

TOKYO, (UrduPoint / Pakistan Point News - 06th Oct, 2016 ) - Tokyo shares closed higher for a fourth straight session Thursday as a weaker Yen boosted exporters while Fujitsu soared on reports it is considering merging its money-losing PC unit with China's Lenovo.

The Dollar rallied as investors viewed strong US data on the key services sector as more evidence the world's top economy is back on track and able to absorb an interest rate hike this year. "The US economy has been recovering even after it went ahead with a rate hike last December," said Mitsushige Akino, an executive officer at Ichiyoshi Investment Management.

"From the Fed's point of view, two rate hikes would have been possible but they haven't been able to hike due to overseas market conditions. "A December hike will happen for sure," he told Bloomberg news.

Tokyo's benchmark Nikkei 225 index gained 0.47 percent, or 79.86 points, to close at 16,899.10, while the broader Topix index of all first-section shares was up 0.

45 percent, or 6.12 points, at 1,353.93.

The dollar edged up to 103.61 yen Thursday from 103.53 yen in New York. It is well up from the levels just below 103 yen in Asia earlier Wednesday. A weaker yen is positive for Japanese exporters as it makes them more competitive abroad and inflates their repatriated profits.

Fujitsu surged 5.66 percent to 568.7 yen after the leading Nikkei business daily reported it was mulling the lenovo merger. The firm later confirmed it is looking at "various possibilities including the reported move".

No final decision had been made on the future of its PC unit, it added. Banks and automakers broadly rose, with Toyota adding 0.73 percent to 6,032 yen and Mizuho Financial Group up 0.58 percent at 173.4 yen. Energy shares were lifted following a rally Wednesday in oil prices. Inpex jumped 3.42 percent to 950 yen and Japan Petroleum was up 2.52 percent at 2,364 yen.