ALBAWABA — Tokyo stocks ended higher Monday, supported by a cheap yen against the dollar and speculation that the Bank of Japan’s next governor would stick to its ultra-loose monetary policies.
Traders were encouraged in part by the yen's weakening, after strong United States jobs data caused reconsideration of expectations that the U.S. Federal Reserve will soon ease off its rate hikes.
"The Japanese market is seen starting with gains as the dollar-yen has moved in the direction of a cheaper yen," senior market analyst Toshiyuki Kanayama of Monex said in a note.
The dollar stood at 132.7 yen on Monday, against 132.00 yen in New York on Friday.
Prime Minister Fumio Kishida told reporters on Monday he would continue to consider the best candidate for the job, suggesting that no final decision had been made.
While the Nikkei newspaper reported that the Japanese government was leaning towards Masayoshi Amamiya, deputy governor of the Bank of Japan, as a possible successor to Haruhiko Kuroda as the central bank’s governor, citing anonymous government and ruling party sources.
This "strengthened the view that the bank will maintain its monetary easing policy", IwaiCosmo Securities told Agence France-Presse.
The benchmark Nikkei 225 index climbed 0.67 percent to close at 27,693.65, while the broader Topix rose 0.45 percent to 1,979.22.
Of the Nikkei 225 Index constituents, wholesalers company Mitsubishi Corp. saw the largest increase Monday, as shares added 7.84 percent to 4,635, while pharmaceuticals company Eisai Co. Ltd. saw the largest drop Monday, as shares fell 3.02 percent to 7,631.
