Tokyo stocks boosted by yen weakness

Japanese shares headed higher on Monday, buoyed continued yen weakness. The Nikkei 225 gained 0.9 per cent to close at 17,556.87 while the broader Topix was up 0.9 per cent at 1,710.67.

The yen weakened to Y163.85 against the euro, after hitting a record low of Y163.9.

Sony Corp, which had been on a roll since forecasting operating margins would hit 5 per cent this year, rose 4 per cent to Y6,940. Yen weakness also boosted TDK, the electronic parts maker, which climbed 2.7 per cent to Y11,010.

Shipping stocks were also in the limelight, helped by a series of bullish analyst reports. Mitsui OSK leapt 6.8 per cent to Y1,642 after Nomura re-started coverage of the sector with a bullish stance based on strong earnings momentum. The sea transport sector was the best performer, up 5.8 per cent. Nippon Yusen, Japan’s biggest shipping company, was 4.1 per cent higher at Y1,097.

Corporate activity stirred prices elsewhere. TOC, a building leasing company, finished the day 4.7 per cent higher at Y1,100, exactly the same as the bid price offered by KK DaVinci Advisors. On Friday the property group said it would launch a bid for TOC after management failed to pull off a planned buyout.

Benesse, an education company, gained 0.6 per cent to Y3,540 after announcing plans to buy a stake in Tokyo Individualised Educational Institute, a cram school operator. The latter was untraded with a glut of buy, reflecting the 33 per cent premium proffered by Benesse.