Japanese electronics giants surge as yen hits 7-year low

GMT 10:37 2014 Tuesday ,04 November

Arab Today, arab today Japanese electronics giants surge as yen hits 7-year low

Japanese electronics giants
Tokyo - AFP

 Shares in some of Japan's biggest electronics firms surged Tuesday as the yen hit a seven-year low in response to the surprise decision last week by country's central bank to ramp up its stimulus programme.
The Bank of Japan's announcement Friday to widen its asset-purchase scheme sent the yen tumbling to 114 against the dollar by Monday lunchtime, while the Nikkei soared, with exporters the main winners.
On Tuesday, Sony jumped 11.05 percent to end at 2,301.0 yen, Panasonic soared 5.97 percent to 1,383.0 yen, camera maker Olympus was up 5.36 percent at 4,125.0 yen, while Sharp's gains were more modest, rising 2.55 percent to 281 yen.
The Nikkei closed 2.73 percent higher, its best finish since late 2007.
In forex trade, the yen was at 113.33 yen, down from 113.99 yen in New York Monday but still up from 112.72 yen late Monday in Asian trade.
A weak yen is good for major Japanese exporters as it makes them more competitive abroad and inflates their repatriated profits.
"The BoJ endorsed a weak yen in a sense," said Hirokazu Kabeya, senior strategist at Daiwa Securities.
He added that it was "natural" for Sony and its rivals to jump in line with the yen's movements.
"They're rising along with the overall market," he added.
The Nikkei, which began Friday trade below its 2013 close, soared over the past couple of sessions thanks to the BoJ easing, which will see huge amounts of yen pumped into markets.
The rise for Sony stood out as it came despite the firm reporting after trade Friday a whopping $1.0 billion six-month loss. However, it did revise up its full-year sales guidance.
Sharp and Panasonic both said they were in the black in the April-September period.


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