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Tokyo stocks rise for third day on yen’s fall

JIJI

Stocks rose for three straight sessions on the Tokyo Stock Exchange on Wednesday, boosted by the yen’s drop against the dollar.

The 225-issue Nikkei average rose 88.03 points, or 0.38 percent, to end at 22,966.38. Tuesday, the key market gauge climbed 74.31 points.

The Topix index of all first-section issues was up 7.55 points, or 0.42 percent, at 1,800.37, after rising 5.98 points the previous day.

Both indexes stayed in positive territory throughout Wednesday’s trading. But their topside was heavy as some investors retreated to the sidelines to see the results of the U.S. Federal Reserve’s policy meeting, due out later Wednesday, market sources said.

Wednesday’s gains were driven by the yen’s fall backed by hopes that the Fed will raise interest rates, an official of a bank-linked securities firm said.

“The dollar’s rise above ¥110.50 buoyed export-oriented names,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co.

Sentiment was lifted also by a rise to a new record high in the tech-heavy U.S. Nasdaq composite stock index Tuesday, the bank-linked securities firm official said.

Tuesday’s U.S.-North Korea summit had a positive impact on Japanese stocks in general, the official indicated, saying the meeting “wasn’t disappointing.”

Rising issues outnumbered falling ones 1,286 to 703 in the TSE’s first section, while 100 issues were unchanged.

Volume fell to 1.198 billion shares from 1.238 billion shares Tuesday.

Automakers Toyota, Honda, Nissan and Subaru were buoyant on the yen’s depreciation.

Aiful closed 4.24 percent higher after Mizuho Securities Co. raised its investment rating and target price for the nonbank lender on Tuesday, brokers said.

Other major winners included staffing service company Recruit and mobile phone carrier SoftBank Group.

By contrast, Nintendo sagged 6.21 percent as investors were disappointed at the game-maker’s presentation at the Electronic Entertainment Expo in Los Angeles, brokers said.

Also on the minus side were clothing retailer Fast Retailing and semiconductor-related Sumco.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average gained 80 points to end at 22,910.