TOKYO, June 29 (Xinhua) -- Japan's benchmark Nikkei stock index ended slightly higher Thursday, as the yen's retreat against the U.S. dollar lifted exporters, which offset some investors opting to book profits.
The 225-issue Nikkei Stock Average edged up 40.15 points, or 0.12 percent, from Wednesday to close the day at 33,234.14.
The broader Topix index, meanwhile, shed 2.35 points, or 0.10 percent, to finish at 2,296.25.
The yen was driven lower versus the U.S. dollar, analysts here said, following Bank of Japan Governor Kazuo Ueda on Wednesday saying that he was committed to the bank's ultra-loose monetary policy, in contrast to the U.S. Federal Reserve and other major central banks' aggressive interest rate hike policies.
The opposing policies have led to a widening interest rate gap between the Bank of Japan and other central banks, leading to a consistently weak yen, analysts here added.
The yen's drop, however, was a boon to exporters who rely on a weaker yen to boost profits when repatriated and enhance price-competitiveness in overseas markets, strategists here said.
"But the weakened yen served as a tailwind for the overall market after Ueda confirmed the BOJ's unchanging dovish stance at the ECB Forum on Central Banking on Wednesday," Toshikazu Horiuchi, an equity strategist at IwaiCosmo Securities Co., was quoted as saying.
Export-related issues gaining on the yen's weakness included TDK adding 0.6 percent, while Olympus rose 2.5 percent.
Suzuki Motor added 3.4 percent, while Nissan Motor advanced 4.2 percent.
Financial-related stocks gained on increased confidence in the U.S. banking system following the Fed's stress test. Among these, Mitsui Financial Group advanced 1.3 percent, while Mitsubishi UFJ Financial Group ended 3.1 percent higher.
Chip-oriented stocks rallied, with chipmaker Screen Holdings gaining 1.4 percent, while semiconductor equipment maker Tokyo Electron ended 2.6 percent higher.
By the close of play, bank, precision instrument and electric appliance issues comprised those that gained the most.
The turnover on the Prime Market on the penultimate trading day of the week came to 3,803.07 billion yen (26.36 billion U.S. dollars). ■