TOKYO, Jan. 6 (BNA): Japan’s Nikkei stock average reversed early losses to close higher on Friday, as investors bought back falling stocks as the yen weakened against the dollar.
The Nikkei rose 0.59% to close at 25,973.85 after opening lower following Wall Street’s weak closing overnight. The index lost 0.46% in the week of the holiday, Reuters reports.
Wall Street’s major indices lost more than 1%, with the Nasdaq leading declines, as evidence of a waning labor market, eroding hopes that the Federal Reserve may halt its rate-raising cycle anytime soon as it remains focused on taming inflation. .
The broader Topix index rose 0.37% to 1,875.76 and lost 0.84% for the week.
“The yen’s gains against the dollar since the Bank of Japan’s policy adjustment affected investor sentiment, but the trend changed yesterday,” said Chihiro Ota, assistant general manager of investment research and investor services at SMBC Nikko Securities.
“Some investors bought back shares because some of these shares looked cheap amid the yen’s decline.”
Heavy stocks in the Nikkei lifted the index, with chipmaking equipment maker Tokyo Electron rising 3.51% and technology investor SoftBank Group rising 1.24%. Pharmaceutical maker Daiichi Sankyo jumped 3.51%.
Sony Group rose 2.41%, and Honda Motor rose 1.93% after Sony Chairman Honda Mobility said their electric vehicle joint venture a year ago was in early discussions about a potential stock offering to raise funds.
Shipping companies jumped 3.27%, becoming the best performers among 33 industry sub-indices on the Tokyo Stock Exchange. Energy Explorers rose 2.42%.
Fast Retailing, owner of clothing brand Uniqlo, lost 0.15%.
The real estate sector fell 1.18% and was the worst performer among industry groups.