Weaker Yen Powers Japan Stocks to Multi-Year High

Hiruki Nakamura
19 Sep, 2014
New York City

Weaker yen drove stock indexes to a new multi-year high in Tokyo today. The Nikkei Stock Average gained 1.6% on Friday and jumped 4.2% in the week after the yen dropped past 109 against the dollar. Sony Corp said it will not pay annual dividend for the first time since 1958.

[R]4:30 PM Tokyo – Weaker yen drove stock indexes to a new multi-year high in Tokyo today. The Nikkei Stock Average gained 1.6% on Friday and jumped 4.2% in the week after the yen dropped past 109 against the dollar. Sony Corp said it will not pay annual dividend for the first time since 1958.[/R]

Stocks in Tokyo built on the week’s momentum and the Nikkei 225 Stock Average closed at high not seen since 2007.

The yen declined for the second week in a row and third day in succession and dropped past 109 mark against the dollar. The weakness in the currency provided the fuel for stock market advance and market indexes erased year-to-date losses.

The Nikkei 225 Stock Average climbed 253.60 or 1.6% to 16,321.17 and closed up 0.2% in the year so far.

The broader Topix index jumped 14 or 1.1% to 1,331.91, the third weekly rise in a row and closed at a high not seen since 2008.

For the week, Nikkei 225 soared 4.2%.

The yen declined to close at 109.10 against one U.S. dollar.

Stocks in Review

Oracle Corporation Japan rose 0.2% to 4,190 yen after the software developer reported sales in first-quarter ending in August jumped 2% to 36.61 billion yen from 35.88 billion yen a year ago period.

Net income in the quarter surged 10.1% to 6.64 billion yen compared to 5.70 billion yen and diluted earnings per share increased to 52.19 yen from 44.86 yen a year earlier.

Sony Corp declined 1% to 1,921 yen and extended weekly losses to 9.7% after the company estimated wider annual loss.

The electronic gadget maker also said it will not pay annual dividend for the first time since trading as public company in 1958.

Sumitomo Corp gained 0.9% to 1,383 yen after the trading company secured contract from PT Pertamina Geothermal Energy, a geothermal power generation subsidiary of Indonesia-based oil, gas and renewable energy producer PT Pertamina for its units 3 and 4 at the Ulubelu Geothermal Area.

Sumitomo Mitsui Financial Group, Inc increased 1.5% to 4,463 yen after the banking and financial service provider plans to expand aircraft leasing business to diversify from the traditional lending business.