Japan's Stocks Rise for Second Day as Weaker Yen Helps Exporters

Jun 19, 2017 3:06 am ET

(Bloomberg) -- Japanese stocks advanced as a weaker yen against the dollar boosted electronics makers including Sony Corp.

The stock market opened higher in Tokyo even after data at the end of last week showed residential housing starts in the U.S. decreased in May and a Kyodo News survey showed support for Japanese Prime Minister Shinzo Abe’s cabinet fell 10.5 percentage points to 44.9 percent. U.S. stock benchmarks closed slightly higher in New York Friday. Japan’s equities also shrugged off data showing a surprise trade deficit in May for Japan.

“There’s a sense of optimism in the market,” said Ayako Sera, a market strategist with Sumitomo Mitsui Trust Bank Ltd. in Tokyo. “A lot of large companies are assuming an exchange rate of 105 yen per dollar. In that sense, with the yen trading at around 111 per dollar, there shouldn’t be any issues in terms of earnings.”

Summary

  • Topix +0.6% to 1,606.07 at close in Tokyo
  • Nikkei 225 +0.6% at 20,067.75
  • Yen -0.1% at 111.01 per dollar
  • Hokkaido Electric +3.4%; raised to overweight from neutral at Mitsubishi UFJ Morgan Stanley
  • Nishimatsuya Chain -3.6%; 1Q parent operating profit -9.9% to 2.66b yen, co. reported after market close Friday
  • Nissin Kogyo -1.9%; downgraded to underperform from neutral at Mizuho
  • Prestige International +4.5%; rated new outperform at Daiwa
  • Nomura Real Estate -14%, biggest decline since 2008; Japan Post and co. confirm that talks on merger have been abandoned, as reported by Nikkei earlier
  • Nippon Yusen -2.9%; decline is likely a reaction to collision between U.S. Navy destroyer and cargo ship operated by co. Saturday, Okasan Securities says
  • Zenrin +8.1% to highest since 2008; raised to outperform from neutral at Daiwa
  • Zeria Pharmaceutical +11%, biggest gain since March 2011; announced plans after market closed Friday to buy back as much as 3.39% of shares for 3.6b yen

For more on Japan markets:
After U.K. Political Shock, Keep an Eye on Japan: Macro View
Abe’s Popularity Slides as Mounting Japan Scandals Take Toll
Taming of Shock-and-Awe Kuroda Shows Central Bank Caution
Japan Avg LNG Import Costs Rise to Highest Since Nov. 2015

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