4:30 PM Tokyo – The Nikkei average in Tokyo crossed 16,000 for the first time since January and the yen plunged to a new low after currency market estimated faster rise in U.S. interest rates. Dentsu Inc, the advertising agency agreed to acquire search and performance-marketing agency Covario Inc.
Stocks in Tokyo closed higher after the yen dropped to a new six-year low and the Nikkei index gained more than 1% and crossed 16,000 for the first time since January.
The yen softened after the U.S. Federal Reserve lifted its outlook for interest rates in 2015 and set expectations of rate increase next year.
However, the statement from the Fed was interpreted differently by currency traders. Currency market anticipates faster increase in rates and dragged the yen to a new six-year low.
The Ministry of Finance reported merchandise trade deficit in August narrowed to 948.5 billion yen from 971.4 billion yen a year ago month and followed by 962.1 billion yen deficit in July.
In August, exports dropped 1.3% to 5.70 trillion yen from a year earlier and decline from 3.9% increase in the previous month. Imports slumped 1.5% to 6.65 trillion yen from a year ago period following 2.3% gain in July.
The Nikkei 225 Stock Average jumped 178.90 or 1.1% to 16,067.57 and the broader Topix index gained 12.95 to 1,317.91.
The yen declined to close at 108.61 against one U.S. dollar.
Stocks in Review
jumped 1.7% to 4,210 yen after the advertising agency’s U.S.-based subsidiary agreed to acquire search and performance-marketing agency Covario Inc.
In fiscal year ending March 2013, Dentsu reported revenue of 594.1 billion yen or $5.94 billion from 345.9 billion yen a year ago and revenues reported by Covario climbed 7.5% to $2.8 billion in 2013.
Japan Post Co
, the letters and packages delivery and savings and life insurance services provider plans to increase the number of branches to 10,022 that manage cancer insurance developed by American Family Life Assurance Co. of Columbus.
rose 0.5% to 1,314.50 yen after the electronics products maker signed an agreement to invest up to 150 billion yen to build lithium-ion batteries production at Tesla’s Nevada giga-factory.
By the 2020, Panasonic plans to produce lithium-ion batteries for 500,000 electric vehicles.