Japan’s Nikkei index closed higher, Tuesday, amid optimism that local companies will continue to announce strong expectations as the yen remains near its lowest level in three decades against the dollar.
The Nikkei rose 0.34 percent to close at 32,695.93 points, while the broader Topix index rose 0.37 percent to 2,345.29 points.
“Japanese corporate earnings season has passed its peak and investors have confirmed that many companies have raised their forecasts,” Shigetoshi Kamada, general manager of the research department at Tachibana Securities, told Reuters.
He added, “With the yen price remaining close to 152 yen per dollar, there are expectations that Japanese companies will further enhance their profit expectations.”
The decline in the yen price is usually in the interest of exporters, because it increases the value of profits earned by companies from abroad when they are transferred to Japan and calculated in yen.
Mizuho Financial Group shares jumped 3.01 percent after revising its full-year earnings forecast due to a weaker yen and more optimistic outlook for the economy.
The banking sector sub-index rose 1.77 percent, supported also by a rise in Mitsubishi UFJ Financial Group shares by 2.47 percent and Sumitomo Mitsui Financial Group shares by 1.25 percent.
Investors are also awaiting important inflation data that could provide an indication of how long the US Federal Reserve will keep interest rates high.
2023-11-14 07:49:54
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