Tokyo’s Nikkei index closes up 3%

Tokyo’s Nikkei index closes up 3%

TOKYO (AFP/APP): Tokyo’s key Nikkei index closed up three percent on Wednesday, extending its winning streak to seven sessions, thanks to overnight US gains and a cheaper yen.
The benchmark Nikkei 225 index closed up 3.00 percent or 816.05 points at 28,040.16, while the broader Topix index rose 2.33 percent or 44.96 points to 1,978.70.
The dollar stood at 121.08 yen, surging from 120.82 yen in New York late Tuesday.
A cheaper yen promoted “purchases of export-reliant industries” like electronics and automobiles, said Chiyo Takatori, a Daiwa Securities strategist.
Exporters generally benefit when the yen falls because it makes their products more competitive overseas and boosts the value of foreign income.
Investors are picking up the US currency as the Federal Reserve moves to hike interest rates in a drive to control inflation, while the Bank of Japan maintains its ultra-loose monetary policy to keep interest rates low.
The Tokyo bourse was also buoyed by overnight gains of Wall Street shares, with the tech-rich Nasdaq index jumping nearly two percent.

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