Summary A weaker yen inflates the value of exporters' repatriated income
TOKYO (AFP) - Tokyo stocks rose 0.74 percent Tuesday morning, with the Nikkei back above 20,000 thanks to a weaker yen and record-setting advances on Wall Street.
The Nikkei 225 index at the Tokyo Stock Exchange climbed 146.22 points to 20,036.49 by the break, while the Topix index of all first-section shares added 0.50 percent, or 8.10 points, to 1,634.76, levels not seen since the end of 2007.
"The impact from a weaker yen, cheaper oil and rising wages points to better earnings this fiscal year than the last," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
"On top of being in an environment where it s easier for Japanese companies to churn out a profit, we re seeing firms embrace the idea of returning more cash to shareholders. From a global investor s perspective, Japanese stocks are looking very attractive."
A weaker yen inflates the value of exporters repatriated income, and in turn boosts their bottom line in yen terms.
In New York the Dow and S&P 500 rallied following acquisitions in the pharmaceutical and apparel sectors and a rise in Apple.
The Dow rose 0.14 percent and the S&P 500 notched its third successive record, rising 0.30 percent. The Nasdaq Composite Index jumped 0.60 percent to 5,078.44.
On currency markets, the dollar was at 119.98 yen against 119.97 yen in New York and well up from 119.63 yen in Tokyo earlier Monday.
Toyota was up 0.45 percent at 8,390 yen, lender Mizuho Financial Group rose 0.33 percent to 246.5 yen and while market heavyweight Fast Retailing, which operates the Uniqlo clothing chain, added 1.97 percent to 50,000 yen.
