Japan Nikkei rises as yen hits fresh 24-year low

Japan share market finished higher for second straight session on Thursday, 14 July 2022, as the yen's depreciation to 139 level against the dollar helped spur bargain hunting in export-oriented shares.

The yen depreciated to a fresh 24-year low at the 139 level against greenback on Thursday, as a stronger than expected US consumer price index raised prospects of aggressive rate hikes by the US Federal Reserve.

At closing bell, the 225-issue Nikkei Stock Average added 164.82 points, or 0.62%, to 26,643.39. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 4.28 points, or 0.23%, to 1,893.13.

Total 23 of 33 TOPIX sectoral sub-indexes advanced, with Fishery, Agriculture & Forestry, Marine Transportation, Precision Instruments, Electric Appliances, Mining, and Iron & Steel issues being notable gainers, while Electric Power & Gas, Banks, and Air Transportation issues were notable losers.

Shipping firms surged, with Mitsui O.S.K. Lines rising 2.4% and Kawasaki Kisen climbing 3.9%.

Panasonic Holdings rose 0.7% after the battery maker said it had selected Kansas as the site for a new electric vehicle battery plant.

CURRENCY NEWS: The yen continued to fall against the U.S dollar Thursday in Tokyo, hitting a fresh 24-year low at the 139 yen level, as a stronger-than-expected U.S. consumer price index raised prospects of aggressive rate hikes by the Federal Reserve. Dollar-buying by domestic importers for settlement purposes also pushed the yen down.

The Fed's move would result in a further widening of the interest rate gap between the United States and Japan as the Bank of Japan remains committed to powerful monetary easing and to conducting bond-buying operations to keep interest rates near zero. The BOJ is expected to maintain ultra-low interest rates at its next meeting, from July 20 to 21, highlighting a growing divergence with a global wave of rate-hiking central banks that has fueled the yen's slump.

At 5 p.m., the dollar stood at 139.10-11 yen, up from 137.04-04 yen at the same time on Wednesday.

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