Nikkei index ends at 1-month high as weak yen boosts exporters

TOKYO (Kyodo) — The Nikkei index ended Friday at its highest level in a month, as exporter issues were lifted by a halt in the yen’s strengthening against the U.S. dollar.

The 225-issue Nikkei Stock Average ended up 285.22 points, or 0.74 percent, from Thursday at 38,647.75, its highest level since July 31. The broader Topix index finished 19.61 points, or 0.73 percent, higher at 2,712.63.

On the top-tier Prime Market, gainers were led by nonferrous metal, marine transportation and wholesale trade issues.

The dollar remained firm in the upper 144 yen range as revised U.S. gross domestic product data, released overnight, eased concern about the future of the world’s largest economy, dealers said.

The Nikkei index remained mostly in positive territory as sentiment was lifted after the Dow Jones index ended at a record high overnight, while the yen’s weakness served as a boon to exporter-oriented issues, analysts said.

A weaker yen boosts exporters’ overseas profits when repatriated.

The upward revision of U.S. GDP in the April-June period to 3.0 percent from a preliminary 2.8 percent, “affirmed solid U.S. economic growth,” said Maki Sawada, a strategist in the Investment Content Department of Nomura Securities Co.

But there was also some caution ahead of a series of U.S. economic data, including personal consumption expenditure for July to be released later in the day, which is closely watched by the Federal Reserve in gauging inflation, she added.