The Japanese stock market extended gains into Tuesday, bolstered by continuing yen weakness and a jump in large property stocks.
The Nikkei 225 closed up 0.9 per cent at 17,163.20. The broader Topix rose 0.8 per cent to 1,708.29.
By late afternoon the yen was trading at Y117.7 to the dollar, helping to push up export focused-sectors. The auto sector climbed 1 per cent. Toyota Motor, Japan’s biggest carmaker, was 0.9 per cent higher at Y7,740. Nissan Motor was 1.1 per cent higher at Y1,319, with Honda Motor up 0.7 per cent to Y4,160.
Mitsui Fudosan, Japan’s biggest property company, jumped 4 per cent to Y3,360 after Goldman Sachs raised its target share price to Y4,150 from Y3,659, citing higher land prices in southern Tokyo. Its two biggest rivals also gained from the general positive sentiment. Mitsubishi Estate advanced 3.6 per cent to Y3,780. Sumitomo Realty & Development was up 2.2 per cent to Y4,590.
Makers of construction materials rose. Sumitomo Osaka Cement leapt 4.9 per cent to Y408, with rival Taiheiyo Cement up 4.7 per cent to Y517, after Credit Suisse began coverage with “outperform” ratings, citing growing private demand.
Sanyo Electric, the troubled electronics manufacturer, had a volatile day, falling in morning trading before recovering to end 1.1 per cent higher at Y186 after the resignation of its chairwoman, Tomoyo Nonaka. Sanyo is set to report a third consecutive annual loss for the year to March, and is being investigated by the authorities for for possible accounting problems.
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