Tokyo stocks close up 1.12pc
October 10, 2013 - 9:41:26 am
TOKYO: Tokyo stocks closed 1.12 percent higher Thursday as the yen weakened and the White House called meetings with leading members of Congress to end a budget stand-off.
The benchmark Nikkei 225 index climbed 156.87 points to 14,194.71, while the Topix index of all first-section shares was up 0.95 percent, or 11.05 points, at 1,177.95.
"The signs emanating from Washington are slightly more positive for equity sentiment," Hiroichi Nishi of SMBC Nikko Securities said.
"Talk of a short-term increase in the debt limit to allow time for broader budget negotiations is seen as a first step to ending the deadlock," Nishi said.
"But with only a week to go now (until October 17 default), there isn't a great deal of time," he added.
President Barack Obama on Wednesday invited Republican and Democratic lawmakers to the White House to try to work through budget disagreements that have resulted in the partial shutdown of the government.
The impasse threatens to cause a debt default if the two sides fail to raise the borrowing limit before the deadline.
On currency markets, the dollar was supported by Obama's formal nomination of fiscal dove Janet Yellen to become the next head of the Federal Reserve.
The dollar rose to 97.72 yen from 97.37 yen in New York Wednesday.
Data Thursday showed Japanese machinery orders -- a key indicator of corporate capital spending -- rose 5.4 percent on-month in August, beating expectations.
Consumer confidence in September also rose from the previous month, marking the first improvement in four months, as Japan's economic recovery boosts household optimism.
In Tokyo stock trading, Fast Retailing fell 0.57 percent to 34,550 yen on a brokerage downgrade.
After markets closed, the operator of the Uniqlo clothing chain said it logged a 26.1 percent rise in net profit for the year to August.
Exporters were generally higher, with industrial robotics maker Fanuc rising 2.03 percent to 16,010 yen and automaker Honda up 2.50 percent at 3,885 yen. (AFP)