Tokyo stocks climb as exporter issues sought on weaker yen
TOKYO (Kyodo) -- Tokyo stocks climbed Monday as exporter shares were bought on a weaker yen, with the U.S. dollar rising on the prospects of higher inflation amid the escalating conflict between Israel and Iran.
The 225-issue Nikkei Stock Average ended up 477.08 points, or 1.26 percent, from Friday at 38,311.33. The broader Topix index finished 20.66 points, or 0.75 percent, higher at 2,777.13.
On the top-tier Prime Market, gainers were led by wholesale trade, nonferrous metal and textile and apparel issues.
The dollar briefly strengthened to the upper 144 yen range in Tokyo on the back of higher U.S. Treasury yields amid expectations that surging crude oil prices will accelerate inflation in the United States, dealers said.
The Nikkei stock index briefly gained over 500 points, boosted by export-oriented auto and electronics shares, as a weaker yen lifts overseas exporters' profits when repatriated, with the impact of the Middle East conflict on Japanese equities viewed as limited for now.
"Today's advance unlikely reflected economic fundamentals," said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co., noting the ongoing conflict in the Middle East.
If Iran moves to close the Strait of Hormuz, a key waterway for oil transportation, oil prices will rise, leading to higher costs for companies and putting pressure on their earnings, Sawada added.
Among notable gainers, Nippon Steel ended up 1.53 percent at 2,872.5 yen after U.S. President Donald Trump on Friday effectively approved a deal for the company to acquire United States Steel Corp.
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