Tokyo stocks end higher on hope for Ukraine talks, dollar 5-yr high

TOKYO (Kyodo) — Tokyo stocks ended higher Monday as sentiment rose on hopes for cease-fire talks between Russia and Ukraine, while export-oriented shares were boosted as the US dollar hit a fresh five-year high against the yen.

The 225-issue Nikkei Stock Average ended up 145.07 points, or 0.58 percent, from Friday at 25,307.85. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 12.74 points, or 0.71 percent, higher at 1,812.28.

Gainers were led by air transportation, insurance and transportation equipment issues.

The US dollar rose to the upper 117 yen range, continuing its climb after hitting its highest level since January 2017, with buying fueled by a divergence in monetary policy between the United States and Japan amid expectations that the US Federal Reserve will take a hawkish stance to tackle inflation, dealers said.

Stocks were higher from the outset after Wendy Sherman, the US deputy secretary of state, said Sunday on a television program that Russia was beginning to show “some signs of willingness to have real, serious negotiations” as pressure mounted on Moscow to end the war .

The Nikkei index rose briefly nearly 500 points in the morning, tracking firm US stock futures.

“Although market participants were cautiously optimistic about a potential cease-fire, they were reluctant to chase the upside due to ongoing uncertainties,” said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

But the market pared gains in the afternoon on weak Asian markets, with investors taking a wait-and-see attitude due to a lack of other positive trading cues, he added.

On the First Section, advancing issues outnumbered decliners 1,445 to 655, while 80 ended unchanged.

Investors sought export-oriented shares as the yen continued to weaken against the US dollar.

Among automakers, Toyota Motor advanced 53.5 yen, or 2.9 percent, to 1,914.0 yen, and Suzuki Motor rose 54 yen, or 1.4 percent, to 3,786 yen.

Air and land transportation issues were buoyant after Prime Minister Fumio Kishida told reporters on Saturday he wants to restart the government’s “Go To Travel” subsidy program at an “appropriate time.”

ANA Holdings gained 68.5 yen, or 2.9 percent, to 2,401.0 yen, Japan Airlines climbed 69 yen, or 3.4 percent, to 2,071 yen, while East Japan Railway added 196 yen, or 3.0 percent, to 6,766 yen.

Travel agency HIS also jumped 140 yen, or 7.5 percent, to 2,000 yen on the news.

Trading volume on the main section fell to 1,187.02 million shares from Friday’s 1,421.33 million shares.