November 14, 2016 / 3:12 AM / 2 years ago

Nikkei flirts with 9-month highs as yen weakens

* Better-than-expected Japan GDP data boosts overall mood

* Financials lifted by expectations of Trump’s policies

TOKYO, Nov 14 (Reuters) - Japan’s Nikkei rose on Monday as a sagging yen bolstered exporter shares while expectations that U.S. President-elect Donald Trump’s policies will stoke inflation and upbeat economic data at home underpinned financials and the market’s outlook.

The Nikkei added 1.5 percent to 17,640.84, reaching its highest levels since early February. Last week, it rose 2.8 percent, its biggest weekly gain since early September.

“Markets are relieved to see a decisive end to the U.S. presidential election with Donald Trump gaining 306 electoral votes,” said Hiroki Allen, chief representative of Superfund Japan in Tokyo.

“Confidence in the U.S. dollar has returned, pushing the yen down to the 107 handle and buoying Japanese exporter stocks.”

The dollar rose above the 107-yen level to its highest since June, fuelled by rising U.S. Treasury yields on market expectations that Trump will increase fiscal spending, leading to higher inflation.

The 10-year Treasury note yield logged a 10-month high of 2.20 percent in Asian trading.

“The Japanese market is mostly driven by a weak yen and the movement of 10-year U.S. Treasury yields, as well as the New York Dow,” said Yutaka Miura, senior technical analyst at Mizuho Securities.

The Dow Jones industrial average ended at a record closing high on Friday, capping off its best week since 2011.

But the Nikkei’s upside could get heavy this week as some investors lock in gains, Miura said, with support seen at 17,500.

Data released early on Monday showed Japan’s economic growth beat economists’ forecasts in the July-September period, expanding for a third straight quarter as exports recovered. Gross domestic product expanded by an annualised 2.2 percent in the third quarter, faster than the 0.9 percent increase markets had expected.

The banking sector subindex added 1.1 percent after rising to highest since early February, while the securities subindex jumped 4.1 percent to its best level since April.

Resona Holdings rose 3.8 percent, hitting its highest since early February after the lender raised its profit forecast for the business year ending March 2017.

But Toyo Tire & Rubber Co skidded 17.5 percent, plumbing its lowest since August after the tire maker cut its net profit forecast for the year ending December.

The broader Topix rose 1.4 percent to 1,398.11, while the JPX-Nikkei Index 400 also added 1.4 percent to 12,561.82. (Reporting by Tokyo markets team; Editing by Jacqueline Wong)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below