By Kevin Buckland and Yantoultra Ngui
TOKYO, March 8 (Reuters) - Japan's Nikkei share average
rose to a 3-1/2-month high on Wednesday, as a weakening yen
buoyed exporters and receding expectations of imminent tweaks to
Bank of Japan policy lifted the real estate sector.
Retailer shares also rallied on optimism for a return of
mainland Chinese tourists after Japan reopened its borders this
month.
The Nikkei ended the morning session up 0.22% at
28,370.92 after earlier reaching 28,431.15 for the first time
since Nov. 24. The index has rallied 3.4% since last Thursday.
The broader Topix rose 0.13% to 2,047.56. Earlier,
it touched 2,050.09, a level not seen since November 2021.
The rise in Japanese stocks came even as most other Asian
markets declined after Federal Reserve Chair Jerome Powell
raised the possibility of the U.S. central bank returning to
large rate hikes to tackle stubbornly high inflation.
That sent U.S. long-term yields higher, but also the dollar
against the yen. The Japanese currency dipped to a near
three-month low around 137.50 to the greenback ,
boosting the value of overseas revenue at automakers and other
exporters.
Mazda jumped 2.37% and Sony advanced
0.63%. Uniqlo store owner Fast Retailing gained 0.98%.
Nissan , however, tumbled 3.57% to lead decliners
after S&P cut its rating to junk status.
Department store operators also rallied, with J. Front
Retailing and Isetan Mitsukoshi Holdings each
up about 3.3%.
"It looks like global investors' focus is on the
possibilities for inbound tourism," said Yunosuke Ikeda, chief
equity strategist at Nomura Securities.
"I am a little cautious on further upside, in particular for
growth stocks in the next couple of months," he added. "U.S.
monetary policy will have an impact on valuation adjustments."
Ikeda also said expectations were declining for a hawkish
tweak to BOJ policy on Friday at Governor Haruhiko Kuroda's last
meeting before retirement, buoying rate-sensitive property
stocks and hurting financial shares.
Real estate was the Nikkei's best performing sub-sector on
Wednesday, rising 0.81%, while financials eased 0.14%.
Energy was the biggest laggard, dropping 1.31% after a slide
in crude prices overnight. (Reporting by Kevin Buckland and Yantoultra Ngui; Editing by
Subhranshu Sahu)
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