Japanese stocks were propelled higher Friday after the U.S. dollar climbed atop the 100-yen level for the first time in four years, stoking sharp gains in exporters.
The Nikkei 225 jumped 416.06 points, or 2.9%, to end the week at 14,607.54, clinching a weekly gain of 6.7%. The surge came as the dollar overcame stiff resistance seen in the last few weeks to climb over the psychologically important 100-yen level overnight in the U.S.
In Hong Kong, the Hang Seng Index regained 109.74 points, or 0.5%, to 23,321.22
After breaking past the ¥100 barrier in U.S. trade, the dollar rallied further in the Asian session, and was fetching ¥101.30 by late afternoon in Hong Kong. Late Thursday in North America, the greenback was buying ¥100.48.
Shares of companies with a significant international presence got a boost on expectations the weakened yen would provide them a competitive edge and increase their repatriated profits.
Casio Computer Co., Panasonic Corp., Komatsu Ltd. and Japan Tobacco Inc. all climbed 3% or more.
Currency-sensitive car-maker shares saw particularly strong gains, with Mazda Motor Corp. rising 7.2%, Nissan Motor Co. up 3%, Mitsubishi Motors Corp. adding 5.2%, and Subaru maker Fuji Heavy Industries Ltd. jumping 11.3%.
Trend Micro Inc. soared 17.8% after announcing a sharp growth in quarterly profit.
Nikon Corp. spiked 14.6%, catching an additional bid a day after issuing a better-than-expected earnings forecast.
Sony Corp. added 2.5%, after it posted its first annual profit in five years.
Suzuki Motor Corp. gained 7.5% after it reported a record profit for the financial year ended March 31.
Renesas Electronics Corp. gained 3% despite reporting a wider annual loss, after the Nikkei newspaper cited a top company official as saying the firm was currently drawing up turnaround plans.
South Korea’s Kospi tumbled as companies that compete directly with Japanese counterparts in export markets declined following the yen’s drop.
Kia Motors Corp. lost 3.3%, and Hyundai Motor Co. gave up 2.3%.
Against the Korean currency, the dollar was changing hands at 1,107.17 won by late afternoon in Asia, compared with the day’s low of 1,092 won.
Several resource shares rose in Sydney as the Australian dollar slid closer to parity with the greenback after an upbeat reading on U.S. weekly jobless claims.
BHP Billiton Ltd. added 0.6% and Rio Tinto Ltd. gained 0.4%, while energy producer Woodside Petroleum Ltd. added 0.7%.
In the currency market, the Australian dollar was at $1.0042, rebounding slightly from $1.0066 in the U.S., but below its level 24 hours earlier, when it traded near $1.02.
In Hong Kong, shares of China Resources Power Holdings Co. plunged 10% in heavy trading volumes after the utility announced plans to acquire piped-gas distributor China Resources Gas Group Ltd. via a stock offer. China Resources Gas fell 3.9%.
In other markets;
In Shanghai, the CSI 300 Index recovered 13.04 points, or 0.5%, to 2,540.84
Singapore’s Straits Times Index took on 10.99 points, or 0.3%, to 3,443.77
Taiwan’s Taiex Index let go of 5.63 points, or 0.1%, to 8,280.26
Korea’s Kospi Index docked 34.70 points, or 1.8%, to 1,944.75
The New Zealand Exchange 50 Gross Index advanced 13.44 points, or 0.3%, to 4,652.78
Australia’s S&P/ASX added 7.71 points, or 0.2%, to 5,206.09
