FX.co ★ Japanese Shares Gain as Yen Weakens

On Monday, the Nikkei 225 Index advanced by 1%, surpassing the 36,000 mark, while the broader Topix Index saw a 1.2% increase to 2,670. This upward trend continued from the previous week's rally, driven primarily by export-oriented companies as the yen weakened from its multi-month highs. A depreciated yen tends to enhance the profitability prospects for Japan’s export-driven sectors and makes Japanese investments more appealing to international investors. Additionally, market participants monitored the progress in trade negotiations between the US and Japan, which were reportedly moving forward. In the industrial sector, companies such as Mitsubishi Heavy, which rose by 3%, Toyota Industries with a 2.3% increase, and Kawasaki Heavy, which gained 2%, showed notable strength. The automotive sector also experienced gains; Toyota Motor increased by 2.8%, Honda Motor by 1.8%, and Nissan Motor by 2.7%. Conversely, technology stocks faced pressure from profit-taking activities, resulting in Advantest declining by 1.7% and Lasertec decreasing by 2.1%.