Tokyo stocks end higher on weaker yen after Fed chief rate cut remarks

TOKYO, Sept. 19 (Xinhua) — Tokyo stocks closed higher on Thursday as exporters were lifted by the yen’s depreciation after remarks from the U.S. Federal Reserve chair eased prospects of further deep interest rate cuts despite a sharp reduction overnight.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended up 775.16 points, or 2.13 percent, from Wednesday at 37,155.33.
The broader Topix index, meanwhile, finished 51.50 points, or 2.01 percent, higher at 2,616.87.
The Fed on Wednesday cut its benchmark interest rate for the first time in four and a half years with a larger-than-usual change of 0.5 percentage points.
Market watchers here noted that investors were more focused on Fed Chief Jerome Powell’s comments after the decision that the move should not be seen as setting a “new pace,” fueling speculation that future rate cuts would be moderate.
Stocks rose across the board, with major exporters such as automakers leading gains on a weaker yen. But some gains were trimmed in the afternoon as the yen strengthened and investors expected the Bank of Japan will refrain from raising interest rates as its policy meeting concludes Friday, analysts said. ■