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Nikkei rises on weaker yen, China's surprise policy shift
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Nikkei rises on weaker yen, China's surprise policy shift
Dec 9, 2024 11:15 PM

(Updates for market close)

By Brigid Riley

TOKYO, Dec 10 (Reuters) - Japan's Nikkei share average

advanced on Tuesday as a softer yen lifted exporter shares,

while stocks with a connection to China soared on Beijing's new

promises of an "appropriately loose" monetary policy next year.

The Nikkei closed up 0.5% at 39,367.58, while the

broader Topix rose 0.3% to 2,741.41.

Automakers were among exporter shares that climbed as the

yen softened against the U.S. dollar.

The dollar was trading around 151.055 yen during

the afternoon session.

Toyota Motor ( TM ) advanced 1.3%, Suzuki Motor ( SZKMF )

soared 2.7% and Honda Motor ( HMC ) added 1.1%.

Fanuc ( FANUF ) and Yaskawa Electric ( YASKF ), up 3.1% and

2.7% respectively, and other shares with strong ties to China

rallied, after Beijing's surprise announcement on Monday that it

plans to implement a looser monetary policy and more proactive

fiscal policy.

Chip-testing equipment maker Advantest ( ADTTF ) was

among a portion of Japan's chip-related shares that tracked AI

leader Nvidia ( NVDA ) and other U.S. technology shares lower

after China's market regulator launched a probe into Nvidia ( NVDA ), but

recovered in afternoon trade.

The stock climbed 0.9%.

However, the Nikkei's rise was limited as investors

cautiously awaited the Federal Open Market Committee (FOMC) and

Bank of Japan (BOJ) monetary policy meetings next week.

"A cut from the Federal Reserve is baked-in, but there's

uncertainty about what the BOJ does. So if the latter hikes, a

stronger yen will hurt Japanese stocks," said Kyle Rodda, senior

financial market analyst at Capital.com.

Somewhat more hawkish guidance from the Fed regarding next

year's policy outlook could counterbalance the impact on the

dollar-yen pair, Rodda added.

U.S. CPI data and the BOJ's "tankan" survey are due later

this week.

Among other major stocks, chip equipment maker Tokyo

Electron ( TOELF ) added 3.5%, entertainment conglomerate Sony

Group ( SONY ) rallied 4.1% and Uniqlo-owner Fast Retailing ( FRCOF )

edged up 0.2%.

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