SYDNEY, June 3 (Reuters) - Japan's stock benchmark Nikkei advanced to a more than three-month high on Wednesday, as a rapidly weakening yen and a so-called fear of missing out, or "FOMO", from investors boosted automakers and other cyclical sectors.
The Nikkei average .N225 gained 1.3% to 22,613.76, its highest closing level since Feb. 21.
The yen rapidly weakened overnight against both the U.S. dollar and the euro, on optimism the worst of the economic downturn from the COVID-19 crisis is over as well as on hopes of additional support from the European policymakers. dollar/yen JPY=EBS hit a two-month high of 108.850 yen, while the euro/yen touched EURJPY=EBS a 4-1/2-month high of 121.805 yen early Wednesday.
As a soft yen boosts Japanese manufacturers' profits made abroad when repatriated, automaker stocks attracted buying.
The broader Topix .TOPX rose 0.7% to 1,599.08, its highest closing since Feb. 26, with all but five of the 33 sector sub-indexes on the Tokyo exchange ending firmer.
Bucking the overall market sentiment, the index of Mothers start-up shares .MTHR retreated 1.2%, after marking a fresh 1-1/2-year high earlier in the session. said the market has been surprisingly resilient to negative news, both domestic and international, but a sense of short-term overheating capped gains.
Japan issued a stay-home alert late Tuesday as the country's capital recorded 34 new coronavirus cases, the highest since early May. U.S. President Donald Trump has threatened to use the military to quell spreading protests against racism and police brutality, but Wall Street stocks rallied on Tuesday, reflecting the global investor optimism. .N
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.