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Nikkei tops 16,000 as weaker yen boosts exporters

Nikkei tops 16,000 as weaker yen boosts exporters
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First Published: Thu, Aug 23 2007. 08 15 AM IST
Updated: Thu, Aug 23 2007. 08 15 AM IST
Tokyo, 23 Aug: Tokyo stocks rose more than 2% on Thursday (23 August) as Honda Motor Co Ltd, Canon Inc and other blue-chip exporters surged on the yen’s fall to 115 yen, a level they had assumed in making earnings projections.
Bridgestone Corp added 3.7% to 2,400 yen as Japan’s largest tyre maker said it would invest about 21.5 billion yen ($188 million) to boost output at plants in India and Indonesia to meet growing demand.
“Investors think Japanese stocks have been oversold in the recent market turbulence and are ready to bounce back if there is any improvement in sentiment,” said Yutaka Shiraki, a senior strategist at Mitsubishi UFJ Securities Co Ltd.
“But no one is confident enough to say US stocks have stablised,” he said.
The Nikkei rose 2.44% or 387.44 points to 16,288.08 as of 0051 GMT, while the broader TOPIX index rose 2.57% to 1,584.64.
The dollar rose to 115.81 yen up from around 115.30 yen in late US trading on Wednesday. Many manufactures assumed an exchange rate of 115 yen in their earnings forecasts.
Canon, which generates three-quarters of its sales overseas, jumped 5.6% to 6,240 yen. Honda surged 4.7% to 3,800 yen.
Nonferrous stocks also climbed, as copper, lead and nickel futures rose in London on Wednesday.
Mitsubishi Materials Corp rose 5.4% to 630 yen and Sumitomo Metal Mining Co Ltd shot up 6% to 2,220 yen.
Trading firm Mitsubishi Corp rose 6.9% to 3,100 yen after it said on 22 August it planned to buy back up to 150 billion yen worth or up to 3.06% of its outstanding stock on Thursday. REUTERS
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First Published: Thu, Aug 23 2007. 08 15 AM IST