Red-hot Nikkei eclipses 13,000 as dollar briefly tests ¥99


Tokyo stocks advanced to their highest level in 4½ years, closing Monday above 13,000 for the first time since August 2008, as the yen’s slide and the Bank of Japan’s bold credit easing measures continued to buoy exporters and financial issues.

The 225-issue Nikkei average gained 358.95 points, or 2.80 percent, from Friday, to close at 13,192.59, its highest since Aug. 12, 2008. It rose as high as 13,225.22.

The broader Topix index of all first-section issues on the TSE added 35.50 points, or 3.33 percent, to close at 1,101.74.

Stocks rose almost across the board with the Nikkei briefly soaring more than 3 percent, as financials and exporters continued benefitting from the BOJ’s decision last week to expand monetary easing on an unprecedented scale, brokers said.

The dollar climbed above the ¥99 mark for the first time since May 2009 in late Tokyo trading Monday on continued yen-selling prompted by the BOJ’s unorthodox policy.

At 5 p.m., the dollar was quoted at ¥98.83-84, compared with ¥97.51-61 in New York and ¥96.30-32 in Tokyo at 5 p.m. Friday. It moved between ¥98.08 and ¥99.03 during the day, changing hands most frequently at ¥98.60. The euro fetched ¥128.42-46 against ¥126.72-82 in New York and ¥124.31-35 in Tokyo late Friday.

“The market was lifted by the dollar’s advance to the ¥98 range. The central bank’s announcement is still having a huge impact on the market,” said Takashi Hiroki, chief strategist at Monex Inc. “The dollar climbing to the ¥100 level is coming in sight,” adding to expectations of improving performances by exporters.

Capital Economics said a further significant fall in the yen probably lies ahead, predicting the dollar to hit ¥105 at the end of 2013 and ¥120 at the end of 2014.

Among exporters, Toyota Motor rose ¥210, or 4.1 percent, to ¥5,300 and Honda Motor gained ¥135, or 3.7 percent, to ¥3,805. Suzuki Motor was up ¥170, or 8.1 percent, to ¥2,261.

Despite technical indicators showing selling pressure, “the market was incredibly strong,” said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc, noting the TSE is attracting robust demand amid hopes for economic and fiscal policies advocated under Prime Minister Shinzo Abe.

  • It’s only going up because the yen is going down. The companies and the country are not any more productive than they were 6 months ago. Or two years ago.

    All that is accomplished by this inflation is higher prices; which is in effect, another tax. The Japanese people are being further robbed by the state (in the name of helping them). Their salaries are worth 20% less than they were worth in October 2 years ago. If you live in Japan, you may have already noticed the higher prices on various goods and services within the last 6 months.

    This will continue to get worse as the government, in the attempt to stir progress and productivity, continue to evade that its interference is what caused these two lost decades in the first place — and that more interference can only result in ensuring a third.