Nikkei surges over 1% after Fed comments
On Monday, the vast majority of Asian stocks climbed up slightly with traders purchasing shares in Japanese exporters as well as other underperforming sectors.
The Nikkei Stock Average soared 0.9%, driven by weakness in the Japanese yen amid the greenback’s broad strength, thus powering export-oriented companies. On Monday, the yen dared to touch ¥111 against the greenback, which soared on comments by the Fed’s head.
Among Tokyo-listed exporters, we should point out to Honda Motor with its 2% surge, Toyota Motor with +1.3% and Canon, demonstrating a 0.6% rise.
A weaker currency helps the overall competitiveness of local companies paying costs at home as well as repatriating earnings from abroad.
Meanwhile, Hong Kong’s benchmark Hang Seng China Enterprises Index, normally tracking the movement of Chinese companies listed in the city, soared 0.7% after dipping more than 11% so far in 2016.
The broader Hang Seng Index gained 0.8% too, while shares South Korea, Australia and Shanghai mostly stood still.