Tokyo shares opened firmly higher Thursday, as a sharply weaker yen boosted exporters.
The gains followed a weak lead from Wall Street after minutes from the Federal Reserve's April policy meeting implied policymakers viewed an interest rate hike in June as a much more serious possibility than the market believed.
The minutes sent the dollar surging 1.0% against the yen, changing hands at 110.20 yen ($1.38) in New York.
This was the first time the greenback rose above the 110-level since the Bank of Japan on April 28 surprised markets by holding off fresh stimulus, a move that sent the Japanese currency soaring more than two% to 109.15 yen from 111.71 yen.
On Thursday, the dollar held most of its gains from the US session, trading at 110.13 yen.
Japanese exporters were lifted by the weaker currency, a plus for their profitability as it tends to spur demand for their shares, analysts said.
"The Nikkei looks set for a very strong day as the dollar-yen exchange rate moved back into the 110 handle," Angus Nicholson, a market analyst at IG in Melbourne, said in a commentary.
"After better than expected (gross domestic product) and now another 0.8% weakening of the yen, it is likely to be smiles all around for Japanese exporters."
The benchmark Nikkei 225 index at the Tokyo Stock Exchange rose 0.98%, or 162.77 points, to 16,807.46 in opening deals, rebounding from a weak session the previous day.
The broader Topix index of all first-section shares advanced 0.82%, or 10.92 points, to 1,349.30.
Japan's economy grew a better-than-expected 0.4% in the first quarter of this year to sidestep a recession, preliminary government figures showed on Wednesday.
Shares of Suzuki rebounded from a 9.4% loss the previous session, surging 5.8% to 2,765.5 yen.
The Japanese small-car maker on Wednesday admitted that it was not using fuel-economy and emissions testing methods required by the government, but it denied deliberately manipulating data to make cars seem more efficient.
On Wall Street, the Dow finished less than 0.1% lower. However, the S&P 500 was up less than 0.1% and the tech-rich Nasdaq closed 0.5% higher.
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The gains followed a weak lead from Wall Street after minutes from the Federal Reserve's April policy meeting implied policymakers viewed an interest rate hike in June as a much more serious possibility than the market believed.
The minutes sent the dollar surging 1.0% against the yen, changing hands at 110.20 yen ($1.38) in New York.
This was the first time the greenback rose above the 110-level since the Bank of Japan on April 28 surprised markets by holding off fresh stimulus, a move that sent the Japanese currency soaring more than two% to 109.15 yen from 111.71 yen.
On Thursday, the dollar held most of its gains from the US session, trading at 110.13 yen.
Japanese exporters were lifted by the weaker currency, a plus for their profitability as it tends to spur demand for their shares, analysts said.
"The Nikkei looks set for a very strong day as the dollar-yen exchange rate moved back into the 110 handle," Angus Nicholson, a market analyst at IG in Melbourne, said in a commentary.
"After better than expected (gross domestic product) and now another 0.8% weakening of the yen, it is likely to be smiles all around for Japanese exporters."
The benchmark Nikkei 225 index at the Tokyo Stock Exchange rose 0.98%, or 162.77 points, to 16,807.46 in opening deals, rebounding from a weak session the previous day.
The broader Topix index of all first-section shares advanced 0.82%, or 10.92 points, to 1,349.30.
Japan's economy grew a better-than-expected 0.4% in the first quarter of this year to sidestep a recession, preliminary government figures showed on Wednesday.
Shares of Suzuki rebounded from a 9.4% loss the previous session, surging 5.8% to 2,765.5 yen.
The Japanese small-car maker on Wednesday admitted that it was not using fuel-economy and emissions testing methods required by the government, but it denied deliberately manipulating data to make cars seem more efficient.
On Wall Street, the Dow finished less than 0.1% lower. However, the S&P 500 was up less than 0.1% and the tech-rich Nasdaq closed 0.5% higher.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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