AFP :
Tokyo stocks rose Tuesday, recovering some of the losses suffered in the previous day’s rout, as the yen weakened against the dollar, while most other Asian markets started the day on a positive note following another record on Wall Street.
With Hong Kong and mainland Chinese bourses closed for a holiday after thundering higher over the past week on a raft of economic stimulus out of Beijing, focus was on Japan following the wipeout fanned by a strong yen.
The currency soared after Japan’s Shigeru Ishiba — who has backed the central bank’s interest rate hikes — won a vote Friday to lead the country’s ruling party.
On Tuesday, the Nikkei climbed more than one percent in early exchanges, paring some of Monday’s nearly five percent drop, as the yen pulled back against the dollar and gave beaten-down exporters some much needed relief.
Data showing Japanese business confidence remained positive in the third quarter also provided a little support.
The yen slipped to as much as 144 per dollar at one point, having sat below 142 Monday.
Traders are keeping an eye on Tokyo with Ishiba due to be sworn in as prime minister later in the day. They will be awaiting details on his plans to boost the economy, with investors concerned that he could unveil corporate tax hikes.
The yen’s weakness came after Federal Reserve boss Jerome Powell indicated the bank would keep cutting interest rates but the pace would take time.
He told the National Association for Business Economics annual meeting in Tennessee that the battle against inflation was progressing and officials’ two percent target was within range, adding that “broader economic conditions also set the table for further disinflation”.