Tokyo stocks close 0.29pc higher

June 17, 2014 - 10:52:52 am

TOKYO: Tokyo stocks closed 0.29 percent higher Tuesday on bargain hunting while a weaker yen boosted exporters, despite jitters over the unrest in Iraq.

The benchmark Nikkei 225 index added 42.68 points to finish at 14,975.97, while the Topix index of all first-section shares was also up 0.29 percent, or 3.52 points, at 1,238.20.

Investors took advantage of cheaper valuations after the Nikkei tumbled more than one percent on Monday in reaction to the fighting in Iraq, where militants are sweeping towards Baghdad after taking over several towns.

On Wednesday the Fed wraps up a two-day policy meeting and while it is expected to further reduce its stimulus and keep interest rates at record lows, comments by bank chief Janet Yellen will be dissected for clues about future policy.

Kenichi Hirano, market analyst at Tachibana Securities, said: "The likelihood of a prolonged US rate scenario will weigh on the dollar's rise, normally an important ingredient to Japan stock market buying.

"But investors have been dip-buying for the last month, defying sometimes weaker-dollar days," he told Dow Jones Newswires.

In forex trade, the dollar rose to 101.94 from 101.84 yen.

Canon rose 0.14 percent to 3,391 yen while Uniqlo clothing chain operator Fast Retailing added 0.30 percent to end at 33,250 yen.

Mitsubishi Heavy Industries fell 1.42 percent to 621 yen. The Japanese giant and Germany's Siemens on Monday unveiled the terms of their joint bid for the energy assets of French industrial jewel Alstom, also coveted by US industry giant General Electric.

On Wall Street, the Dow edged up 0.03 percent, while the broad-based S&P 500 advanced 0.08 percent and the Nasdaq Composite Index rose 0.24 percent. (AFP)