Tokyo Shares Close Higher On Weaker Yen

Tokyo, June 7 (UrduPoint / Pakistan Point News - 7th Jun, 2022 ) :Tokyo shares closed higher Tuesday as the Yen trended lower, offering tailwind to exporters, while investors eyed rising US yields.

The benchmark Nikkei 225 index added 0.10 percent, or 28.06 points, to end at 27,943.95, while the broader Topix index rose 0.41 percent, or 7.92 points, to 1,947.03.

Wall Street shares firmed overnight, giving a boost to the Tokyo market, although the rise of US Treasury yields continued to weigh on share prices.

The Dollar stood at a fresh 20-year high of 132.95 yen, keeping its momentum from New York, where it fetched 131.88 yen.

A stronger dollar and a lower yen generally support Japan's exporters by making their products more competitive overseas.

"The yen's sudden depreciation is boosting (Tokyo) shares, mainly automakers," Okasan Online Securities said.

Globally, investors are shifting their focus to a US inflation report due on Friday to gauge the tone and speed of future actions Fed policymakers may take, analysts said.

"Wall Street will need to wait for a couple more inflation reports after this one before anyone can confidently make a call as to when the Fed may alter their tightening course," said Edward Moya, senior market analyst at Oanda.

In Tokyo trading, automakers were higher with Toyota gaining 1.27 percent to 2,190.5 yen, Honda jumping 2.51 percent to 3,382 yen and Nissan rising 2.60 percent to 554.6 yen.

Kobe Steel surged 3.80 percent to 736 yen while JFE Holdings grew 3.60 percent to 1,636 yen.

SoftBank Group added 0.72 percent to 5,430 yen while Uniqlo operator Fast Retailing dipped 0.32 percent to 68,480 yen.