Nikkei Tops 68,000 for 1st Time; Dollar Rises to 160 Yen

Tokyo, June 3 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average surged to top 68,000 for the first time ever Wednesday morning, thanks to buying of issues related to artificial intelligence and semiconductors. At 10:06 a.m., the index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section stood at 68,293.88, up 1,559.64 points, or 2.34 pct, from Tuesday. All major U.S. stock indexes rose Tuesday amid growing expectations for a further increase in AI demand reflecting strong earnings reports from major U.S. information technology firms. Following the U.S. market strength, buying took the upper hand from the outset of Tokyo stock trading Wednesday. In Tokyo currency trading Wednesday, the dollar climbed to 160 yen for the first time since April 30, when the Japanese government and the Bank of Japan are believed to have conducted a yen-buying, dollar-selling foreign exchange market intervention. The dollar drew safe-haven buying amid uncertainty over the Middle East situation, market sources said. The yen came under selling due to concerns that Japan’s trade deficit would balloon as the Middle East turmoil is expected to continue and crude oil prices will spike as a result, the sources said. At 10 a.m., the dollar stood at 159.92-93 yen, up from 159.68-68 yen at 5 p.m. Tuesday. The euro was 1.1629-1629 dollars, down from 1.1649-1649 dollars, and at 185.98-99 yen, down from 186.01-02 yen. Japanese Finance Minister Satsuki Katayama issued a verbal warning against the yen’s depreciation Wednesday, saying, “We will act appropriately at any time as needed.” END [Copyright The Jiji Press, Ltd.]