FX168 Financial News (Asia Pacific) News Japan's Nikkei/Yen rose more than 1% on Monday (6/16), mainly driven by a 9% increase in chipmaker Advantest's stock price. As its target price was raised by brokerage firms, investors ignored the geopolitical tension between Israel and Iran.
By the close, the Nikkei index rose 1.26% to close at 38,311.33 points, while the broad TSE index rose 0.75% to close at 2,777.13 points. #日本市场 #
Of the more than 1,600 stocks on the Tokyo Stock Exchange's main market, 69% rose, 26% fell, and 3% remained flat.
The conflict between Israel and Iran continued over the weekend, with both sides pointing the finger at energy infrastructure and driving up oil prices. Global investors are closely watching the conflict between Israel and Iran for signs of escalating into a broader regional conflict.
Shuutarou Yasuda, a market Analyst at Tokai Tokyo Intelligence Laboratory, said: “Despite market concerns about geopolitical risks in the Middle East region, the Japanese stock market is still strong.”
“This is because investors are relieved that oil prices (which have an impact on the local economy) have not surged today,” he added.
In Japan, Advantest's share price rose 9.63% after J.P. Morgan Securities raised its target price from 10,500 yen to 11,000 yen last Friday. The stock was the biggest driver of the Nikkei Index's rise.
The shipping sector rose 1%, and the market expects freight rates to rise due to the Middle East conflict. Kawasaki Kisen shares rose 1.38%.
In terms of other individual stocks, Uniqlo's parent company Fast Sales rose 1%, and the technology investment company SoftBank Group rose 2.5%.
The steelmakers sector rose 1%. Among them, Nippon Steel shares rose 1.5% after US President Donald Trump approved his proposal to buy United States Steel for $14.9 billion.
The depreciation of the yen has also made the profit prospects of Japan's export-oriented industries promising, and the local stock market is also benefiting from it. Yasuda said that the weakening yen also supported market sentiment.
The yen weakened last weekend, investors turned to the dollar, etc.Safe haven assetsThis trend continued until Monday. The US dollar rose 0.1% against the yen to 144.235 yen. A weaker yen is beneficial to exporters because when profits are remitted back to Japan, it can increase the yen value of overseas revenue.
Meanwhile, investors' attention turned to the Bank of Japan's upcoming policy meeting. It is widely expected that the Bank of Japan will keep interest rates unchanged, as it is evaluating the potential inflationary impact of rising oil prices and awaiting further clarification on the development of US trade and tariffs.
