Toyota, Honda and Nissan shares boosted as Japan moves to weaken the yen

Article by Christian A., on September 16, 2010

Shares of Toyota, Honda, Nissan and other exporters rose due to a 2.3% increase in the Nikkei stock average to a one-month closing high as Japan moved to weaken the yen. For the first time in six years, Japan decided to intervene and sell yen to bring the currency off 15-year highs against the dollar. This action brought the Nikkei out of its negative state and the index went up to 3% at one stage.

As a result, automakers posted increases across the board, with Toyota Motor Corp. growing 3.8% to 3,010 yen and Honda Motor Co. rising by 4% to 2,944 yen.

Meanwhile, Nissan Motor Co. gained 3.7% to 702 yen. Tomomi Yamashita, a fund manager at Shinkin Asset Management, said that the Japanese economy relies heavily on its earnings from exports overseas. He said that the intervention is timely and has already had an impact after a series of verbal threats.

He explained that corporate performance “hasn't been bad” but the shares have become “unattractive” with the dollar nearing 80 yen. He believes that the next question now is if the government can help the economy further by following through with steps.

After dropping as low as 9,199.08, the benchmark Nikkei gained 217.25 points to 9,516.56. The dollar had traded at around 85.00 yen after reaching a 15-year low of 82.87 yen.

This rise in the yen had occurred after Prime Minister Naoto Kan got a Japan ruling party vote victory last Tuesday over rival Ichiro Ozawa who had been urging for interventions to weaken the yen.

Market players said that the intervention in the foreign exchange market had made short-term speculators hurry to cover short positions in stock futures. [via autonews - sub. required]

If you liked the article, share on:

Topics: toyota, honda, nissan, shares

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries