Tokyo stocks close up 0.66pc

August 14, 2014 - 10:06:00 am

TOKYO: Tokyo stocks closed 0.66 percent higher on Thursday, boosted by a weaker yen and after gains on Wall Street.

The Nikkei 225 index added 100.94 points to finish at 15,314.57, while the Topix index of all first-section issues was also up 0.66 percent, or 8.37 points, to 1,270.50.

Tokyo's rise followed a solid performance on Wall Street, with investors hopeful that the Federal Reserve will maintain its economy-boosting easy money policy for a while.

The Dow Jones Industrial Average finished up 0.55 percent as the market largely discounted a lacklustre US retail sales report and some disappointing corporate earnings.

Tokyo trading volume was thin with many market players away for Japan's mid-summer holiday.

Investors largely shrugged off weaker-than-expected Japanese machinery orders in June. Core machinery orders rose 8.8 percent from a month earlier, reversing a sharp decline in May.

The data followed the Wednesday release of Japanese April-June economic growth data, which showed a quarterly contraction of 1.7 percent, slightly better than expected, although it was the biggest drop since the 2011 quake-tsunami disaster.

The growth figures "may have at least removed one short-term worry for investors", Okasan Securities director Takashi Matsumoto told Dow Jones Newswires.

"The market should be more able to trend upward as valuations remain cheap by most standards," Matsumoto said.

Among major shares, mobile carrier SoftBank rose 1.18 percent to 7,056.0 yen, Toyota added 0.17 percent to finish at 6,009.0 yen, while Panasonic firmed 1.18 percent to 1,248.0 yen.

In currency markets, the dollar strengthened to 102.54 yen, from 102.43 yen in New York. (AFP)