AP News, December 14th, 2006
Japanese stocks rose Thursday to a 7-month high as the yen's recent weakness encouraged investors to buy autos and other exporters.
The benchmark Nikkei 225 stock index rose 136.27 points, or 0.82 percent, to finish at 16,829.20 points on the Tokyo Stock Exchange _ the index's highest closing since May 11.
Japanese stocks have advanced the last four sessions amid a retreat in the yen against the dollar. A cheaper yen makes the products of Japanese exporters less expensive and inflates overseas earnings when repatriated.
Toyota Motor Corp., which added 0.96 percent to 7,370 yen ($62.46) and Kyocera Corp., which posted a 1.12 percent to 10,860 yen ($92.03).
Other gainers included Japan's top oil seal maker NOK Corp., which rose 7.57 percent to 2,275 yen ($19.28) and Canon Electronics Inc., which climbed 3.23 percent to 5,750 yen ($48.73). Internet services company Softbank Corp. gained 1.61 percent to 2,525 yen ($21.45).
Meanwhile, Toshiba Corp. closed 0.13 percent lower at 771 yen ($6.53) after it announced the sale of its entire stake in Toshiba-EMI Ltd. to its partner, Britain's EMI Group Plc., for about US$179 million. Toshiba said it has decided to sell its 45 percent-stake in the joint venture as the music contest business was less relevant to other Toshiba businesses at present.
The broader Topix index, which includes all shares on the exchange's first section, added 12.66 points, or 0.77 percent, to 1,651.85 points.
Moderating oil prices have also bolstered the outlook of Japanese companies. Resource poor Japan has to import almost all its oil.
In currencies, the U.S. dollar was trading at 117.52 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT) Thursday, unchanged from late Wednesday in New York. The euro bought US$1.3214, up from $1.3204.
The yield on the benchmark 10-year Japanese government bond rose to 1.6200 percent, from Wednesday's finish of 1.6050 percent. Its price fell to 100.68, from 100.81.
