TOKYO (AFP) – Tokyo’s key Nikkei index gained more than three per cent on Friday on the back of strong US economic data and a weaker yen against the dollar.
Late morning the Nikkei 225 was up 3.06 percent at 37,849.61 points while the broader Topix index was 2.57 percent higher at 2,667.55.
Mizuho Securities said earlier that the Japanese market was likely to “follow the trend of US stocks rising on the back of the US July retail sales results.”
“In addition, the ongoing depreciation of the yen is likely to support the market,” the brokerage said.
On Wall Street, the Dow Jones Industrial Average rose 1.4 per cent on Thursday while the broad-based S&P 500 added 1.6 per cent
The tech-focused Nasdaq Composite Index surged by 2.3 per cent.
This came after US retail sales rose 1.0 per cent in July from June, exceeding expectations and reassuring investors about the health of the world’s biggest economy.
The dollar rose more than one percent against the yen after the retail sales report was released.
In Tokyo, the dollar fetched JPY148.93 on Friday.
Among major shares, exporters were higher thanks to the weaker Japanese currency, with Toyota soaring 2.39 per cent to JPY2,722 and Honda rising 1.91 per cent to JPY1,576.
The Nikkei plunged more than 12 per cent last Monday on worries about the US economy and a stronger yen, before soaring more than 10 per cent the following day.
