Nikkei hits near 1-month high on weaker yen; Sony soars on outlook

Japanese stocks rose to a near one-month high on Wednesday as exporters received a boost from a stronger dollar following firm U.S. housing data, while Sony Corp soared after releasing earnings.

Sony soared 6.5 percent and was the second most traded stock by turnover after it reported earnings that suggested strong underlying performance, notwithstanding the impact of April earthquakes on some of its operations.

The Nikkei share average climbed 1.6 percent to 16,757.35 points, its highest close since April 27.

But overall trading remained subdued, with volume on the Tokyo Stock Exchange’s first section at 1.618 billion shares, the lowest since mid March.

Although turnover edged up to 1.783 trillion yen, recovering from the previous day’s 1.67 trillion yen when it hit the lowest this year, it remained thin.

“Turnover has been bad in Japan and that’s a function of a number of approaching events that could determine the mood going forward,” said Stefan Worrall, director of Japan equity sales at Credit Suisse.

He said that investors feel poised between positive risk and negative risks as they digest the outcome of Group of Seven meetings, while they cautiously await the Brexit vote and the U.S. Federal Reserve’s next policy meeting, both scheduled in June.

The broader Topix added 1.2 percent to 1,342.88 and the JPX-Nikkei Index 400 rose 1.2 percent to 12,118.43.

Source: Reuters