Nikkei stock index briefly tops 70,000 for 1st time since July
Baku, October 5, AZERTAC
The Nikkei stock index briefly topped the 70,000 line on Monday for the first time since early July, led by heavyweight technology shares as fading expectations for a rate hike by the U.S. Federal Reserve lifted sentiment, according to Kyodo.
The 225-issue Nikkei Stock Average ended up 1,637.40 points, or 2.40 percent, from Friday at 69,946.86. The broader Topix index finished 54.22 points, or 1.33 percent, higher at 4,145.22.
On the top-tier Prime Market, the main gainers were electric appliance, glass and ceramics product and chemical issues.
The U.S. dollar traded mostly in the upper 157 yen range in Tokyo, briefly rising above the 158 yen line.
At 5 p.m., the dollar fetched 157.65-67 yen compared with 157.79-89 yen in New York and 157.57-59 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.1200-1201 and 176.57-61 yen against $1.1247-1257 and 177.55-65 yen in New York and $1.1260-1261 and 177.43-47 yen in Tokyo late Friday afternoon.
The yield on the benchmark 10-year Japanese government bond ended down 0.015 percentage point from Friday's close at 3.085 percent in line with falls in U.S. Treasury yields as expectations for the Fed's rate hike faded.
Stocks tracked Wall Street gains late last week following the release Friday of weaker-than-expected U.S. nonfarm payrolls for September, which dampened expectations of a consecutive rate hike at the Fed's policy meeting in October.
"The trend of the Nikkei stock index has changed in terms of technical (analysis)," said Wataru Akiyama, strategist in the Investment Content Department of Nomura Securities Co., noting that the index had moved out of its recent downward trend.
A decline in West Texas Intermediate crude oil futures following the Group of Seven countries' decision to release 100 million barrels of diesel and crude oil from emergency reserves also supported investor sentiment, dealers said.
Meanwhile, the benchmark Nikkei index traded below the 70,000 line in the afternoon after topping the threshold in morning trading.
"A sense of achievement prompted selling to lock in gains," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
A policy speech by Japanese Prime Minister Sanae Takaichi in the afternoon ended without causing any major market turbulence as her remarks were in line with market expectations, dealers added.
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