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Japan's Nikkei ekes out gains on softer yen in choppy trade
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Japan's Nikkei ekes out gains on softer yen in choppy trade
Nov 13, 2024 7:37 PM

TOKYO, Nov 14 (Reuters) - Japan's Nikkei share average

edged higher on Thursday buoyed by a weaker yen, as investors

bought up stocks after a selloff in the previous session, but

struggled to maintain momentum as tech stocks tracked their U.S.

peers lower.

The Nikkei added 0.1% to 38,761.02 by the midday

break, while the broader Topix climbed 0.5% to 2,720.93.

AI-focused startup investor SoftBank Group, down

1.8%, joined other heavyweight tech stocks' slide to drag on the

overall index.

Tokyo Electron ( TOELF ) and Advantest ( ADTTF ) fell 2.9% and

1.1%, respectively.

The yen's slide against the U.S. dollar to its lowest level

since July 24 lent support to export shares, including to Toyota

Motor ( TM ) and Sony Group ( SONY ), up 1.6% and 1.1%,

respectively.

A softer yen tends to boost Japanese exporters' overseas

earnings when repatriated, buoying trader sentiment.

Among other shares, the largest percentage gainer on the

index was Mercari ( MRCIF ), up 7.2%, followed by Kubota

, which gained 6.9%.

But the upward momentum eased and the Nikkei briefly dipped

into negative territory as the market awaited fresh direction.

"My impression is that the upside (for gains on the Nikkei)

faces resistance," said Hiroshi Namioka, chief strategist at T&D

Asset Management.

The so-called "Trump trades" have boosted U.S. shares to

record highs, in turn lifting Japanese equities back toward the

psychologically significant 40,000-point level last week.

However, the Nikkei has since faltered.

The benchmark index declined for the second straight day on

Wednesday as investors booked profit and weighed the potential

negative impact on Japan from the incoming Trump

administration's stance on trade and tariffs.

Meanwhile, "there haven't been any particularly noticeable

policies, by which I mean policies that determine the direction

of the market, coming out," Namioka said.

Amid the uncertainty, the Nikkei is likely to hold in the

38,000-40,000 yen range in the medium-term, he added.

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