Thursday, October 24, 2013
Tokyo Stocks End Higher On Weaker Yen, Strong China Data
TOKYO (Kyodo)--Tokyo stocks recouped sharp losses to end higher Thursday as sentiment was lifted by a weaker yen and strong Chinese manufacturing data.
The 225-issue Nikkei Stock Average closed up 60.36 points, or 0.42 percent, from Wednesday at 14,486.41, after falling as low as 14,273.71. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 7.37 points, or 0.62 percent, at 1,203.35.
Gainers were led by construction, communication and paper issues, while decliners included utilities, real estate and consumer finance firms.
The Nikkei briefly sagged more than 150 points in morning trading, but it reversed its course in the afternoon as the U.S. dollar climbed to the upper 97 yen range from the lower 97 yen level, brokers said.
The indexes were also underpinned by the preliminary HSBC China Manufacturing Purchasing Managers' Index, which stood at 50.9 in October, up from September's final reading of 50.2. The figure provided a sense of relief as it came in above 50, which separates economic expansion from contraction, the brokers said.
"The market drew support from the China data as it beat the market expectation of 50.4" and hit a seven-month high, said Hiroaki Hiwada, strategist at Toyo Securities Co.
In morning trading, stocks came under selling pressure, as the yen inherited its overnight strength against the dollar on the back of views that the U.S. Federal Reserve will maintain its quantitative easing measures for a long period.
"Investors avoided taking risks (in the morning) following weak equities" in Asia, Europe and the United States, said Shoko Tani at Nomura Securities Co.'s investment research department. She added there were concerns over the course of the Chinese economy due to a surge in the country's interbank lending rates amid speculation about monetary tightening.
Many exporters turned higher in line with the yen's fall with Bridgestone rising 25 yen, or 0.7 percent, to 3,445 yen and Nissan Motor climbing 9 yen, or 0.9 percent, to 1,006 yen.
Electric machinery maker Hitachi surged 51 yen, or 8.4 percent, to 659 yen after the company revised upward its earnings forecast for the April-September period.
Electronics maker Panasonic was up 14 yen, or 1.5 percent, at 936 yen following news reports that the company is planning to cut up to 50 percent of its workforce in its semiconductor business by fiscal 2014 in an effort to improve earnings.
Advancing issues outpaced sliding ones 1,321 to 309 on the First Section, while 124 ended unchanged.
Trading volume on the main section came to 2,311.25 million shares, down from Wednesday's 2,727.33 million shares.