Nikkei Rises to One-week High on Softer Yen, Solid Wall Street
By Vanilla Sharma | February 10, 2014 3:18 PM EST
Japan's Nikkei share average rose to a one-week high on Monday morning, moving further away from a four-month low hit last week as gains on Wall Street and a softer yen underpinned sentiment.
Nikkei Stock Exchange
Analysts said that foreign investors including macro funds are cautiously stepping back to buy recently-battered Japanese stocks as they keep an eye on key events this week. New Federal Reserve Chair Janet Yellen delivers her first testimony to the House on Tuesday and the senate on Thursday.
"In the short-term, investors are covering their short positions as risk appetite has come back," said Nobuhiko Kuramochi, a strategist at Mizuho Securities. "But they are not yet confident about further market rises until they get assurance for U.S. policy and growth at Yellen's testimony this week."
The Fed's tapering of its massive bond-buying programme was partly responsible for a renewed selloff in emerging markets recently, and Kuramochi said investors will be keen to hear Yellen's views on the stimulus-tapering and ructions in developing economies.
The Nikkei advanced 1.2 percent to 14,634.01 in mid-morning trade after rising as much as 14,659.97 earlier, the highest since February 3. The index has comfortably moved back to trade above its 200-day moving average after it breached the line to hit a four-month low of 13,995.86 last week.
In the United States, data on Friday showed nonfarm payrolls added 113,000 jobs in January - well shy of the forecast for 185,000. The U.S. unemployment rate in January hit a five-year low of 6.6 percent.
Strong job gains in construction hinted that cold weather was probably not a major factor in January job creation, and Wall Street gained as traders appeared to expect that the January numbers will be revised upward next month.
On Monday, exporters bounced after the dollar bought 102.65 yen, the highest since late January.
Olympus Corp (7733.T) jumped 5.3 percent to a one-month high after the company said its operating profit for the April-December quarter more than doubled to 49.8 billion yen.
The Topix rose 0.9 percent to 1,199.92, with 30 of its 33 subsectors in positive territory.
On the losing ledger, Asahi Glass (5201.T) tumbled to 7.7 percent to 538 yen, the lowest since November 2012 after the glassmaker said its operating profit for the year through December 2014 will likely fall 6.1 percent on the year to 75 billion yen.
The JPX-Nikkei Index 400, an index launched this year comprised of firms with high return on equity and strong corporate governance, rose 0.8 percent to 10,819.88.
Join the Conversation
- Travel Alert: Australia Mulls To Review Airport Security Policy, Could Allow Scissors, Metal Cutlery Back In Planes
- 5 Likely Reasons Why You Are Not Getting Hired
- This Is How Obesity Weighs Down Global Economy By 2 Trillion Dollars Every Year
- Consumer Alert: Retailer Simons Goes Out Of Quebec, To Open Five Stores Across Canada
- Signs That You Are A Smartphone Zombie (And The Dangers This Poses)
- Russia Is Ready for Shooting War, Will Likely Win Looming Nuclear Showdown with U.S. – Report
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Black Friday And Cyber Monday Sale 2014: AT&T's Cricket Wireless Offers Discounts On Lumia 1320, Galaxy S5, S4 And HTC Desire 510
- Google Joins Forces with GoPro Inc with New Google Maps Focusing on Destination
- Target Early Black Friday 2014 Sale Ad Released For Nov. 26, 2014 Includes Deals On Toys, HDTVs And Video Games Such As ‘FIFA 15’ And ‘NHL 15’ For Xbox 360 [WATCH VIDEO]
- 16GB iPhone 6 for $99 at Sam’s Club is the Best 2014 Black Friday Deal Around
- ISIS Kidnaps Iraqi Defence Minister’s Family, Executes Female Parliament Candidates