Nikkei Index Jumps Over 3% Amid Strong US Data, Weaker Yen

Agencies 

Tokyo: Tokyo’s Nikkei index saw a significant boost on Friday, climbing over three percent, driven by strong US economic data and the yen’s weakening against the dollar.

By late morning, the Nikkei 225 was up 3.06 percent, standing at 37,849.61 points, while the broader Topix index rose 2.57 percent to 2,667.55.

Mizuho Securities attributed the rally to positive momentum from US stock markets, which gained strength following better-than-expected US retail sales results for July. The brokerage further noted that the ongoing depreciation of the yen is also bolstering the Japanese market.

On Wall Street, the Dow Jones Industrial Average increased by 1.4 percent on Thursday, the S&P 500 added 1.6 percent, and the tech-heavy Nasdaq Composite Index surged by 2.3 percent. This came after US retail sales showed a 1.0 percent rise in July, which exceeded market expectations and reassured investors of the resilience of the US economy.

The dollar gained over one percent against the yen following the US retail sales report. By Friday in Tokyo, the dollar stood at 148.93 yen. Japanese exporters benefited from the weaker yen, with Toyota shares rising 2.39 percent to 2,722 yen and Honda up 1.91 percent to 1,576 yen.

Earlier in the week, the Nikkei experienced a dramatic plunge of over 12 percent due to concerns over the US economy and a strengthening yen, but it rebounded by more than 10 percent the following day.