Tokyo's Key Nikkei Index Jumps Over 3%

Tokyo, (APP - UrduPoint / Pakistan Point News - 16th Aug, 2024) Tokyo's key Nikkei index gained more than three percent on Friday on the back of strong US economic data and a weaker Yen against the dollar.

Late morning the Nikkei 225 was up 3.06 percent at 37,849.61 points while the broader Topix index was 2.57 percent higher at 2,667.55.

Mizuho Securities said earlier that the Japanese market was likely to "follow the trend of US stocks rising on the back of the US July retail sales results."

"In addition, the ongoing depreciation of the yen is likely to support the market," the brokerage said.

On Wall Street, the Dow Jones Industrial Average rose 1.4 percent on Thursday while the broad-based S&P 500 added 1.6 percent

The tech-focused Nasdaq Composite Index surged by 2.

3 percent.

This came after US retail sales rose 1.0 percent in July from June, exceeding expectations and reassuring investors about the health of the world's biggest economy.

The Dollar rose more than one percent against the yen after the retail sales report was released.

In Tokyo, the dollar fetched 148.93 yen on Friday.

Among major shares, exporters were higher thanks to the weaker Japanese Currency, with Toyota soaring 2.39 percent to 2,722 yen and Honda rising 1.91 percent to 1,576 yen.

The Nikkei plunged more than 12 percent last Monday on worries about the US economy and a stronger yen, before soaring more than 10 percent the following day.