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Nikkei gains on weaker yen, China's surprise policy shift
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Nikkei gains on weaker yen, China's surprise policy shift
Dec 9, 2024 7:30 PM

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 rose 0.09% to 39,197.42 by the midday

break, while the broader Topix gained 0.14% to 2,738.26.

Automakers were among exporter shares that climbed as the

yen softened against the U.S. dollar.

The dollar was trading around 151.14 yen during

the session.

Toyota Motor ( TM ) advanced 0.9%, Suzuki Motor ( SZKMF )

soared 3.5% and Honda Motor ( HMC ) added 1.8%.

Fanuc ( FANUF ) and Yaskawa Electric ( YASKF ), up 3.6% and

2.6% 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.

Shiseido ( SSDOF ) jumped 4.9% to become the top percentage

performer on the Nikkei.

A portion of Japan's chip-related shares tracked AI leader

Nvidia NVDA.O and other U.S. technology shares lower after

China's market regulator launched a probe into Nvidia over

suspected violation of the country's antimonopoly law.

Chip-testing equipment maker Advantest ( ADTTF ), which

counts Nvidia among its customers, traded flat after dipping in

early trade.

However, the early gains on the Nikkei narrowed as investors

awaited the Federal Open Market Committee (FOMC) and Bank of

Japan (BOJ) meeting next week for the policy decision.

"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.

However, somewhat more hawkish guidance from the Fed

regarding next year's policy outlook could counterbalance the

impact on the dollar-yen pair, Rodda added.

The U.S. inflation report and the BOJ's "tankan" survey are

due this week.

Among other major stocks, chip equipment maker Tokyo

Electron ( TOELF ) gained 2.2%, entertainment conglomerate Sony

Group ( SONY ) added 4%, while Uniqlo-owner Fast Retailing ( FRCOF )

slid 1.1%.

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