Roundup: Nikkei adds 0.74 pct on yen's retreat, market eyes Yellen testimony, Greek reforms
Xinhua, February 24, 2015 Adjust font size:
The Nikkei stock index extended its winning streak for a fifth straight session Tuesday, adding 0.74 percent to close at a near 15-year high, as the yen's retreat gave exporters a boost ahead of U.S. Federal Reserve Chair Janet Yellen 's congressional testimony and a list of reforms to be reviewed by Greece's creditors.
The Nikkei 225 index climbed 0.74 percent, or 136.56 points higher, to end the day at 18,603.48, while the broader Topix index of all first-section issues added 0.36 percent, or 5.45 points, to
finish at 1,508.28.
While the yen's slide made some export-related issues a profitable prospect, local analysts said the market was also keenly awaiting Yellen's remarks as well as the unfolding situation between Greece and its creditors.
"Most investors are waiting for statements from the U.S. financial authorities and the submission of Greece's economic policies," said Toshihiko Matsuno, chief strategist at SMBC Friend Securities.
Analysts here also noted that while U.S. Federal Reserve Chair Janet Yellen's remarks to lawmakers could have a bearing on exchange rates, it would be unlikely that she would say anything to trigger speculation, although economists and market players will be tuning in keenly for any hints about the exact timing of the Fed's plans to raise its interest rates.
"Currency rates could react to her comments, although I assume she will avoid saying anything that will spark market speculation, " said Yutaka Miura, a senior technical analyst at Mizuho Securities Co.
Concerns were raised about a possible extension to Greece's bailout program, as Athens failed to meet a deadline of Monday to submit a list of planned reforms to be reviewed by its creditors.
Greek officials said the list would be submitted Tuesday; however, the extension deal was not in jeopardy. The officials said the list will include ways to fight tax evasion and cut government costs.
The European Central Bank, the European Commission and the International Monetary Fund, the three of which are Greece's creditors, are expected to deliver their ruling on the extension later Tuesday and as yet, the unresolved issue of Greece's finances, which were exacerbated by the delay in Athens submitting its reform proposals, sent some investors to the sidelines in a wait-and-see mood.
Currency markets saw the U.S. dollar rise to 119.22 yen, compared to 118.76 yen logged in New York. A weaker yen is boon for exporters who see their competitiveness in overseas markets as well as their profitability and profit outlooks increase when the yen is weak.
Profits made overseas are augmented by companies here when the yields are repatriated on favorable exchange rates.
Consumer electronics maker Casio jumped four percent to 2,090 yen, following media reports that the company plans to produce more of its most expensive watches to meet rising demand from overseas customers visiting Japan.
Glass and ceramic-related issues were also among the day's notable gainers, with Asahi Glass advancing 4.4 percent to 762 yen, following Mizuho Securities upping its price target and maintaining its rating on the firm's stock.
Toto, the world's largest toilet manufacturers and pioneer of the Washlet shower toilet, was also a winner on Tuesday, jumping 4. 3 percent to close the day at 1,661 yen.
But while Skymark gained 5.88 percent to 36 yen, following All Nippon Airways saying it will pump funds into the ailing carrier as part of a turnaround plan, Honda skidded down 0.16 percent to 3, 922 yen, after announcing yesterday that Takanobu Ito, its Chief Executive Officer, would be stepping down, following the automaker being involved in massive global recalls as the biggest client of Takata who produced fatally exploding airbags.
Oil and energy issues lost ground on falling prices for crude Tuesday, with oil exploration giant Inpex Corp. slipping 1.9 percent to 1,356 yen, while engineering firm JGC Corp. slid 1.5 percent to close the day at 2,487 yen.
Trading volume on Tuesday dropped to 2.32 billion shares on the Tokyo Exchange's First Section, down from Monday's volume of 2.49 billion shares, with advancing issues outnumbering declining ones by 1,051 to 683. Endi