Nikkei strikes 7-yr high as dollar bashes yen; Fast Retailing shines

miércoles 5 de noviembre de 2014 02:24 GYT

TOKYO, Nov 5 (Reuters) - Japanese stocks rose to new
seven-year highs on Wednesday as heavyweight Fast Retailing Co
 surged on strong monthly sales, while exporters got a
boost as the dollar rose against the yen after U.S. mid-term
election results have showed Republicans made major gains.
    Fast Retailing, which soared 2.3 percent, contributed hefty
37.50 points to the Nikkei benchmark after it said same-store
sales at its Uniqlo clothing outlets in Japan rose 10.5 percent
in October from a year earlier. 
    The Nikkei benchmark, which was trading in negative
territory earlier in the day, ended 0.4 percent higher to
16.937.32, the highest closing level since October 2007.
    In late afternoon trade, the dollar rose to a seven-year
high to 114.40 yen after a sweeping victory by
Republicans in the United States' mid-term elections raised
hopes for an end to political gridlock in Washington, boosting
risk sentiment. 
    But traders said that due to Japanese stocks' steep rises in
a short period of time, profit-taking can hit in the near term.
    The Nikkei soared 8.2 percent in the last three trading days
as investors cheered the BOJ's policy announcement on Friday, as
well as the Government Pension Investment Fund's decision to
increase its allocation of funds to domestic stocks.
    The broader Topix gained 0.2 percent at 1,371.76,
while the JPX-Nikkei Index 400 advanced 0.1 percent
to 12,523.76.

 (Reporting by Ayai Tomisawa; editing by Simon Cameron-Moore)