Nikkei hits more than 1-mth high on weak yen, sales tax hike delay

domingo 29 de mayo de 2016 22:58 GYT

* Weak yen boosts exporters

* Investors not taking big positions before June events - traders

By Ayai Tomisawa

TOKYO, May 30 (Reuters) - Japan's Nikkei share average rose to more than a one-month high on Monday as the dollar rose against the yen after U.S. Federal Reserve Chair Janet Yellen hinted a near-term interest rate hike, while news that Japan's government is delaying a sales tax hike also supported sentiment.

The Nikkei rose 0.9 percent to 16,985.62 in midmorning trade, the highest level since April 28.

The Fed chair said on Friday an interest rate increase in coming months "would be appropriate," if the economy and labour market continued to improve.

Bullish sentiment was also supported by Japanese Prime Minister Shinzo Abe's decision to delay a sales tax hike scheduled for next April by 2-1/2 years.

Masahiko Komura, vice president of the ruling Liberal Democratic Party, told reporters on Monday of Abe's decision.

Traders said that although the market is relieved by the delay in the tax hike, investors will likely refrain from taking large positions before big events scheduled next month.   Continuación...