Tokyo Stocks Hit 22-Month High on Wall Street Gain, Weak Yen

Published June 20th, 2017 - 09:40 GMT
A currency trader in Tokyo observes progress in the US presidential election as a TV channel displays portraits of contenders Hillary Clinton and Donald Trump. (AFP)
A currency trader in Tokyo observes progress in the US presidential election as a TV channel displays portraits of contenders Hillary Clinton and Donald Trump. (AFP)

Tokyo stocks extended their winning streak for a third straight session on Tuesday, with a key index ending at a 22-month high buoyed by overnight gains on Wall Street and the weaker yen.

The benchmark Nikkei 225 Stock Average on the Tokyo Stock Exchange (TSE) gained 162.66 points, or 0.81 percent, from Monday to 20,230.41, the highest close since August 18, 2015.

The broader Tokyo Stock Price Index, which includes all shares on the market's First Section on the TSE, was also up 11.18 points, or 0.70 percent, to 1,617.25.

On Monday, the Dow Jones Industrial Average and the S and P 500 index hit record highs, chiefly thanks to a rally in technology stocks.

In Tokyo, shares of export-oriented companies advanced on the back of the yen's depreciation against the US dollar.

The weak yen supports exports by making Japanese products more competitive overseas and increases their overseas profits when converted into local currency.

In the currency market, at 03:40 pm (06:40 GMT), the US dollar fetched JPY 111.54-55 against JPY 111.47-57 in New York and JPY 111.11-12 in Tokyo at 5:00 pm Monday.

 

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