Japan stocks edge up, weaker yen offsets Fed disappointment

  • Reuters
  • Stock Market News
Japan stocks edge up, weaker yen offsets Fed disappointment
Credit: © Reuters.

* Nikkei rises 0.09%, Topix adds 0.14%

* Stocks recoup earlier losses as yen weakens to 2-mth low

By Shinichi Saoshiro

TOKYO, Aug 1 (Reuters) - Japan's Nikkei share average recouped early losses and ended marginally higher on Thursday, supported by a weaker yen which helped offset disappointment that the U.S. Federal Reserve is not embarking on a lengthy easing cycle.

The Fed on Wednesday lowered rates for the first time since 2008, as widely expected, but Chairman Jerome Powell said the move was not the start of a long series of rate cuts, sending U.S. share markets lower. Nikkei .N225 ended the day up 0.09% at 21,540.99 points.

The index initially fell as much as 1% but clawed back ground as the yen JPY= slid to a two-month low against the dollar after the Fed proved less dovish than anticipated.

"Prior to the FOMC (Federal Open Market Committee) meeting, the chief concern was that while a rate cut was expected to be good for equities, it could also end up strengthening the yen by weakening the dollar," said Takashi Hiroki, chief strategist at Monex Securities.

"But Powell's views doused strong yen concerns, and that has been supportive for Japanese stocks."

Shares of exporters, which benefit from a weaker yen, advanced. Toyota Motor Corp 7203.T rose 1%, Honda Motor Co 7267.T edged up 0.4%, Canon Inc 7751.T added 0.9% and Nintendo 7974.T advanced 3.3%.

Nomura Holdings 8604.T rallied 9% as the investment bank said its first-quarter profit soared more than ten-fold after restructuring its portfolio. financial shares also rose with Daiwa Securities Group 8601.T climbing 2.5% and Shinsei Bank 8303.T advancing 3.8%.

Takeda Pharmaceutical 4502.T gained 7.4% after its sales in the April-June quarter increased 88.8%. Corporation 4452.T , on the other hand, fell 3.4% after the cosmetic product maker saw its January-June net profit decline 8.8%. broader Topix .TOPX rose 0.14% to 1,567.35.

Of Tokyo's 33 subindexes, 13 were in positive territory, led by securities .ISECU.T . (Editing by Kim Coghill)

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