Tokyo stocks close higher after North Korea sell-off

 30 Aug 2017 - 9:55

Tokyo stocks close higher after North Korea sell-off

AFP

Tokyo: Tokyo stocks closed higher Wednesday on bargain-hunting following the previous day's sell-off fuelled by North Korea's missile launch over Japan.

The benchmark Nikkei 225 index, which hit a four-month low Tuesday, gained 0.74 percent, or 143.99 points, to end at 19,506.54, while the Topix index of all first-section issues rose 0.62 percent, or 9.89 points, to close at 1,607.65.

Buying in Tokyo was boosted by a slip in the yen, which helped exporters.

The dollar fell to as low as 108.50 yen following the missile launch but recovered through Tuesday and was changing hands at 110.01 yen in Asia on Wednesday.

A weaker yen boosts the value of exporters' repatriated profits and makes them more competitive overseas.

"A cheaper yen supported bargain-hunting purchases," Okasan Online Securities strategist Yoshihiro Ito said in a commentary.

"Investors bought back stocks as they are relieved to see gains in New York," Hikaru Sato, senior technical analyst at the investment strategy section of Daiwa Securities, told AFP.

"The yen's weakness is also helping sustain buying sentiment.

"However, the Tokyo market is expected to remain nervous about geopolitical factors for now."

Uniqlo operator Fast Retailing, a market heavyweight, which tumbled nearly two percent on Tuesday, rose 0.81 percent to 31,050 yen.

Sony jumped 2.88 percent to 4,321 yen and Panasonic gained 0.79 percent to 1,458.5 yen.

Toyota rose 1.00 percent to 6,151 yen and Nissan firmed 0.18 percent to 1,087.5 yen.