Nikkei Ends At 7-Month High As U.S. Inflation Fears Ease

Tokyo stocks rose Monday, August 15, 2022, with the benchmark Nikkei ending at a fresh seven-month high amid optimism that the rise in inflation in the United States has peaked, while upbeat earnings by some Japanese companies also provided support, Kyodo News reported.

Photo Insert: The Tokyo Stock Exchange

The 225-issue Nikkei Stock Average ended up 324.80 points, or 1.14 percent, from Friday at 28,871.78, the highest since Jan. 5. The broader Topix index finished 11.78 points, or 0.6 percent, higher at 1,984.96.

On the top-tier Prime Market, gainers were led by pharmaceutical, precision instrument, and rubber product issues.

The US dollar at one point fell to the lower 133 yen range on expectations that the Federal Reserve will slow the pace of interest rate hikes, but later came back to the mid-133 yen zone amid strong stocks, dealers said.

The US central bank has been aggressively lifting rates to keep inflation in check, Mainichi Japan also reported.

At 5 p.m., the dollar fetched 133.51-53 yen compared with 133.56-66 yen in New York and 133.25-27 yen in Tokyo at 5 p.m. Friday. The euro was quoted at $1.0233-0235 and 136.62-66 yen against $1.0251-0261 and 136.88-98 yen in New York and $1.0296-0298 and 137.20-24 yen in Tokyo late Friday afternoon.

The yield on the bellwether 10-year Japanese government bond was flat from Friday's close at 0.185 percent as earlier buying on long-term US Treasury market moves late last week was offset by selling on the Tokyo stock market rise.

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