In Tokyo the flagship Nikkei index gained 0.54% to 38,804.65 points and the broader Topix index appreciated by 0.57% to 2,740.19 points.
The Tokyo Stock Exchange closed in the green on Monday, supported by the weak yen, despite new warnings from Japan about possible intervention on the foreign exchange market if necessary to defend its currency.
Conversely, the Hong Kong Stock Exchange fell (-0.83% around 06:45 GMT), to its lowest level in almost two months, while the lack of new support measures from Beijing for Chinese economic activity depressed the walk.
In Tokyo the flagship Nikkei index gained 0.54% to 38,804.65 points and the broader Topix index appreciated by 0.57% to 2,740.19 points.
The price of the yen, which has fallen against the dollar since the beginning of June, was watched by investors like milk on fire.
Because the greenback is once again flirting with the 160 yen mark, the exceeding of which had triggered Japan’s latest interventions on the foreign exchange market between the end of April and the beginning of May.
“We are ready to take appropriate measures at any time in the event of excessive fluctuations based on speculation,” Japanese Deputy Finance Minister Masato Kanda warned on Monday, firmer statements than in recent days.
However, “the market seems less afraid of interventions now”, given the “constancy” of the pressure on the yen for two months, commented Monday in a note Alvin Tan, foreign exchange strategist at RBC Capital Markets, who “doubts” by elsewhere that the bar of 160 yen to the dollar is a “firm red line” for Tokyo.
Nissan reduces capacity in China
Nissan (-0.6%) announced at the end of the day on Friday that it had stopped producing in one of its factories in China, where the Japanese manufacturer is suffering greatly from competition from local manufacturers like BYD, electric champions in low costs.
Located in Changzhou, near Shanghai, this joint venture factory between Nissan and China’s Dongfeng had a production capacity of 130,000 vehicles per year, or 8% of Nissan’s total production capacity in China.
Oil down slightly
The dollar was worth 159.69 yen around 06:55 GMT, after having exceeded 159.90 yen at the opening of the Tokyo Stock Exchange, against 159.80 yen on Friday at 21:00 GMT.
The euro was almost stable at 170.89 yen, and traded for 1.0701 dollars against 1.0693 dollars at the end of last week.
The oil market was close to equilibrium: around 06:45 GMT the barrel of American WTI lost 0.12% to 80.63 dollars and the barrel of Brent from the North Sea lost 0.11% to 85.15 dollars.
