Tokyo stocks close higher for 4th straight day, boosted by yen's depreciation-Xinhua

Tokyo stocks close higher for 4th straight day, boosted by yen's depreciation

Source: Xinhua| 2022-06-08 19:41:43|Editor: huaxia

TOKYO, June 8 (Xinhua) -- Tokyo stocks closed higher on Wednesday, continuing its winning streak for the fourth day, as it has been supported by the yen's recent sharp depreciation.

The 225-issue Nikkei Stock Average closed up 290.34 points, or 1.04 percent, from Tuesday at 28,234.29, hitting its highest level since March 29.

The broader Topix index closed 22.95 points, or 1.18 percent, higher at 1,969.98.

On the top-tier Prime Market, gainers were led by mining, real estate and wholesale issues.

Among Prime Market issues, advancing issues outnumbered declining ones 1,413 to 356, while 69 ended unchanged.

In the auto sector, Toyota Motor gained 1.8 percent while Nissan rose 1.2 percent.

Energy-related issues increased following crude oil futures' rise to a three-month high in New York trading overnight.

Oil explorer Inpex closed up 4.7 percent, while Japan Petroleum Exploration surged 5.7 percent and refiner Idemitsu Kosan increased 2.1 percent.

Trading volume on the Prime Market rose to 1,300.38 million shares from Tuesday's 1,174.58 million.

The Japanese yen plunged to a fresh 20-year low against the U.S. dollar on Wednesday, continuing its fall from the previous day into the lower 133 yen range, as market players expected a prospect of an increasing divergence in monetary policy between Japan and the United States.

The U.S. Federal Reserve decided in March to raise key interest rates for the first time since 2018 in an effort to curb inflation.

In contrast, Bank of Japan Governor Haruhiko Kuroda said the previous day that the central bank will stick to its powerful monetary easing in order to attain its 2-percent inflation goal in a sustainable way.

The Japanese currency's depreciation accelerated throughout the day after U.S. Treasury yields increased during after-hours trading.

The solid gains in the Tokyo stocks market also increased risk appetite and prompted investors to buy the dollar.

However, market participants refrained from chasing the upside as they waited for the U.S. consumer price data for May, which will be released later in the week, as they gauge the rate of inflation and respective stance from the Fed, according to analysts.

The market was additionally lifted by hopes for a recovery in Japan's economy as the country prepares to open its doors to inbound visitors starting Friday, analysts said.