Tokyo stocks continue rise on yen weakness

Japanese large and mid-cap shares rose on Friday, gaining from an overnight rise in US shares and a further weakening in the yen against the dollar.

The Nikkei 225 closed up 0.7 per cent at 17,971.49. The broader Topix rose 0.9 per cent to 1,772.94.

By late afternoon the yen was trading at Y123 to the dollar.

Export-focused sectors continued to gain from the tailwinds of US stocks and dollar strength. Autos was up 1.3 per cent, with electrical machinery advancing 0.6 per cent. Toyota Motor, Japan’s biggest carmaker, rose 1.6 per cent to Y7,690. Hitachi, the electronics conglomerate, advanced 1.2 per cent to Y902.

Bull-Dog Sauce jumped 6.5 per cent to Y1,694 after Steel Partners raised its offer price for the sauce maker to Y1,700 a share from Y1,584.

Yahoo Japan leapt 3.8 per cent to Y43,350 after saying it had formed a joint venture with Apple to offer music download services.

Small-caps saw the strongest gain on Friday, powering ahead from their May record lows despite an undistinguished annual earnings season. Analysts say the prejudice against all small-cap stocks in the wake of last year’s Livedoor scandal is beginning to fade. The Mothers market of smaller growth stocks was up 1.3 per cent to 939.29, with the Jasdaq 1.7 per cent higher at 82.46.

But the Tokyo Stock Exchange’s Reit index lost the morning’s modest gains to close 0.1 per cent lower at 2,344.75, hit by a modest fall in bond yields.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.