Tokyo stocks edge up by break

 04 Jul 2017 - 10:02

Tokyo stocks edge up by break
File Photo.

AFP

Tokyo: Tokyo stocks edged higher Tuesday morning, with a weak yen lending support as investors shrugged off North Korea's latest missile launch.

The benchmark Nikkei 225 gained 0.43 percent, or 85.41 points, to sit at 20,141.21 by the break, while the Topix index of all first-section issues was up 0.21 percent, or 3.45 points, at 1,617.86.

"In addition to China's manufacturing ... US manufacturing data has been better than expected, pushing up US long-term yields and weakening the yen against the dollar," said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities, told Bloomberg News.

The dollar traded at 113.23 yen, slightly off 113.39 yen in New York but up from 112.60 yen in Tokyo Monday afternoon.

A weaker yen is good for the profitability of Japan's exporters.

Japanese stocks were also supported by expectations that Prime Minister Shinzo Abe will prioritise economic policies following his ruling party's rout in Tokyo assembly elections on Sunday.

The market largely ignored North Korea's latest missile test Tuesday morning. The Japanese government said the missile landed in its exclusive economic zone.

Toyota was up 2.35 percent at 6,090 yen by the break, while market heavyweight Fast Retailing, which operates the Uniqlo brand, rose 1.78 percent to 38,110 yen.

Financials were higher, with Mitsubishi UFJ rising 1.05 percent to 765.1 yen and Mizuho Financial Group advancing 0.73 percent to 206.8 yen.

Energy giant Idemitsu Kosan plunged following news it is raising $1.2 billion in a share sale ahead of a planned merger with rival Showa Shell Sekiyu that is opposed by the company's founding family.

The stock fell as much as 13 percent, the most in six years, before ending the morning down 11.2 percent at 2,895 yen . Showa's stock jumped 6.66 percent to 1,121 yen.