Japan's Nikkei rises as weaker yen provides boost to exporters
TOKYO: Japan's Nikkei share average rose on Monday even as the conflict between Israel and Iran continued, with a weaker yen supporting sentiment.
As of 0155 GMT, the Nikkei was up zero point nine per cent at 38,164.07, while the broader Topix rose zero point five four per cent to 2,772.46.
"Investors were less worried about geopolitical tensions in the Middle East, and the market saw no need for additional sell-offs," said Kentaro Hayashi, senior strategist at Daiwa Securities.
"There is an optimism that the conflict will be contained with countries like the United States and Russia stepping in," he added.
The Nikkei fell on Friday after Israel launched strikes against Iran, and Wall Street ended sharply lower later in the day.
On Monday, Advantest jumped eight per cent to provide the biggest boost to the Nikkei. The chip-making equipment maker, one of the largest components of the Nikkei, tends to be bought when the market bets the upside of the benchmark index.
Automakers rose on the back of a weaker yen, with Honda Motor and Nissan Motor rising three point four per cent and one per cent, respectively. Toyota Motor was up zero point four per cent.
The yen fell at the end of the week as investors bought safe-haven assets, such as the US dollar.
The greenback was last up zero point one seven per cent to 144.325 against the Japanese yen.
A weaker Japanese currency tends to boost shares of exporters, as it increases the value of overseas profits in yen terms when firms repatriate the money to Japan.
Nippon Steel rose two point four per cent after US President Donald Trump approved its US$14.9 billion bid for US Steel on Friday.
The sector for steel makers rose one point seven seven per cent to become the top performer among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes.
The shipping sector rose one point six six per cent on expectations for rising freight rates amid the Middle East conflict. Kawasaki Kisen rose two point four per cent.
Of more than 1,600 stocks trading on the TSE's prime market, 66 per cent rose and 28 per cent fell with four per cent trading flat.
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