FX168 Financial News (Asia Pacific) News The Nikkei Index ended three consecutive declines on Friday (November 15), as investors bottomed out to buy falling stocks, while the weakening yen led to a rise in export auto stocks.

By the close, the Nikkei Stock Average of 225 constituent stocks rose 107.21 points, or 0.28%, to close at 38,642.91 points on Friday. The broader TSE Index rose 10.42 points, or 0.39%, to close at 2,711.64 points. #日本市场 #

Among the main markets on the first board, the industries with the biggest gains were in the shipping, mining, and electricity and gas sectors.

Affected by strong US economic data, the Federal Reserve will not rush to relax monetary policy, causing the dollar to hit a four-month high against the yen in the Tokyo market, reaching above 156, and then falling back, as traders await Bank of Japan Governor Ueda Kazuo's speech next Monday to find further clues about Japan's interest rate hike.

“The weakening yen boosted the Japanese stock market,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Think Tank. “The rise in European stocks and the weak overnight closing of US stocks suggest that funds previously flowing into US stocks due to Trump transactions are now being redistributed to other regions.”

Wall Street's major stock indexes closed lower on Thursday because Federal Reserve Chairman Powell said the Fed did not need to rush to relax monetary policy, which dampened investors' expectations for another rate cut this year.

After the Nikkei Index had a cumulative drop of nearly 1,000 points over the past three days, investors bought on dips to drive up the stock market, and the weakening yen also raised automakers' expectations of return profits, thus boosting the automotive sector.

A weaker yen usually boosts export stocks, because when companies remit overseas profits back to Japan, the depreciation of the yen increases the value of profits in yen.

Banks and other financial stocks are favored. Three major Japanese banks announced profit increases from April to September and raised profit expectations for the full year, as banks' profitability improved after the Bank of Japan raised interest rates.

Mizuho Financial Group rose 6.4%, while Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose 1.2% and 1.13%, respectively.

However, the increase narrowed in the afternoon. Analysts said traders chose to wait and wait for President-elect Donald Trump to further announce cabinet candidates to obtain more guidance on US economic policy.

“This makes it difficult for investors to actively buy,” said Makoto Sengoku, a senior stock market analyst at Tokai Tokyo Think Tank. “Although the market is concerned about Trump's tariff policy, his tax cuts and deregulation plans also make investors hopeful about US economic growth. The question is which policy will be implemented first and have an effect.”