Tokyo stocks close up 0.60pc

December 03, 2013 - 9:19:02 am
TOKYO:Tokyo stocks closed up 0.60 percent on Tuesday, at their highest for almost six years, as shares of major exporters got a boost from the weakening yen.

The benchmark Nikkei 225 index added 94.59 points to 15,749.66, its best finish since mid-December 2007, while the Topix index of all first-section shares gained 0.29 percent, or 3.60 points, to 1,262.54.

With few immediate trading cues, Tokyo's rise was largely driven by a gain in the dollar after an upbeat US manufacturing report heightened speculation the US Federal Reserve could taper its bond-buying programme more quickly.

The greenback was buying 103.22 yen in Tokyo Tuesday afternoon, up from 102.94 yen in New York.

A weaker yen is good for Japanese exporters as it makes their product prices more competitive abroad and increases repatriated profits.

Sony closed 0.63 percent higher at 1,910 yen, Toyota rose 0.31 percent to 6,390 yen and Canon added 0.59 percent to 3,390 yen.

Investors are now looking to the release of US payrolls data on Friday for a handle on the state of the world's largest economy.

"Ahead of the release of the US jobs data, the dollar will unlikely surge further," Mitsushige Akino, fund manager at Ichiyoshi Asset Management, told Dow Jones Newswires.

"Regardless of the outcome, Friday's jobs data will offer a trading cue for the dollar and shares," he added.

US stocks Monday took a breather after a recent rally, slipping as some analysts cited profit-taking and speculation about tighter monetary policy.

The Dow fell 0.48 percent and the S&P 500 dipped 0.27 percent -- after last week notching up new record highs.

The Nasdaq, which last week topped 4,000 for the first time in 13 years, lost 0.36 percent. (AFP)

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