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Nikkei posts longest winning streak since 1961 on weaker yen, Abe hopes

Reuters|
Updated: Oct 20, 2017, 01.19 PM IST
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For the week, Nikkei gained 1.4 per cent, its sixth straight weekly gain and the longest such winning streak in a year.
For the week, Nikkei gained 1.4 per cent, its sixth straight weekly gain and the longest such winning streak in a year.
TOKYO: Japan's Nikkei share average rose for the 14th straight session on Friday to post its longest winning streak in over 50 years, as a weaker yen helped stocks recoup earlier losses.

During Asian trade, the dollar soared 0.6 per cent to 113.16 yen after news that the U.S. Senate voted on Thursday to approve a budget blueprint for the 2018 fiscal year. This could pave the way for Republicans to pursue a tax-cut package without Democratic support.

The Nikkei opened 0.3 per cent lower but ended up 0.04 per cent, or 9.12 points, at 21,457.64. That was enough to clinch its longest daily winning streak since 1961.

For the week, it gained 1.4 per cent, its sixth straight weekly gain and the longest such winning streak in a year.

The Nikkei has advanced more than 5 per cent over the past 14 days on hopes that Japanese Prime Minister Shinzo Abe's ruling coalition will win a general election on Oct. 22.

Traders said that the market is prone to profit-taking before the election, but the weaker yen, which helps export competitiveness, raised investors' risk appetite on Friday.

"People were prepared to sell Japanese stocks on profit-taking, but now that there are expectations that U.S. stocks will rise later in the day, they don't want to sell," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

"Stocks are pulled by those who want to take profits and those who want to chase the market higher."

Shares of suppliers to Apple Inc fell after its stock stumbled overnight on doubts about its double 2017 iPhone release strategy.

Murata Manufacturing Co sagged 1.8 per cent, Alps Electric tumbled 2.2 per cent and Foster Electric shed 3.1 per cent.

Food stocks gained ground, with NH Foods rising 0.8 per cent and Nippon Suisan gaining 2.7 per cent.

Exporters were mixed as some investors took profits on recent gains. Toyota Motor Corp gained 0.3 per cent, Honda Motor Co dropped 0.8 per cent, while Hitachi added 0.3 per cent.

The broader Topix was flat at 1,730.64.
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