INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei share average advanced to a more than one-month high on Wednesday as exporters such as automakers and technology
firms got a boost after the dollar hit a six-month high against the yen.
The Nikkei gained 0.4 per cent to end at 22,794.19, its highest
closing point since June 15.
The dollar was up 0.05 per cent at 112.955 yen after going as high as 113.08, its strongest since Jan
9 as United States Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the economy and reinforced views that the Fed was on
track to steadily hike interest rates.
Toyota Motor Corp and Mazda Motor Co both rose 1.4 per cent, Subaru Corp advanced 1.2 per cent while
TDK Corp gained 1.0 per cent, and Advantest Corp added 1.5 per cent.
"In the mid-to-long term, a trade war risk will likely pressure global
economic growth but investors are encouraged to take risks now on the back of the strong dollar," said Shogo Maekawa, global market
strategist at JPMorgan Asset Management.
Meanwhile, the Nikkei benchmark index is set for an annual reshuffle in October and e-commerce
business operator Start Today Co and Internet business operator CyberAgent Inc are seen as top picks to join, Daiwa Securities estimated
The stocks rose 3.3 per cent and 2.3 per cent, respectively.
Conversely, Daiwa said that brewer Takara Holdings and stadium and amusement
park operator Tokyo Dome Corp are seen as likely candidates for removal, sending the stocks 2.3 per cent and 3.9 per cent lower,
respectively.
Stocks added to the index benefit because managers of index-tracking funds must include them in their portfolios, while shares
of companies that are dropped have to be sold.
The broader Topix gained 0.4 per cent to 1,751.21
