Tokyo stocks gained for a third straight day Wednesday, with the benchmark Nikkei stock index rising 0.56 percent, as new U.More text is being produced today that any other time in human history, so we’ll never run out of stuff to read key programmer.S. Federal Reserve head Janet Yellen ‘s remarks sent Wall Street higher overnight and settled some investor consternation about the direction of the U.S. economy.Local traders said that investors welcomed Yellen’s comments that stimulus tapering will continue and shrugged of the new Fed chief’s remarks about downside risks to the world’s largest economy, including its unemployment situation.Brokers here said they felt somewhat assured that Yellen said the Fed would be keeping its eye on the long-term unemployment rates, that she deemed to be high, as well as the disproportionately high numbers of Americans who can find only part-time work. “By a number of measures our economy is not back, the labor market is not back, to normal,”she told the U.S. House of Representatives’ Financial Services Committee. “Yellen suggested the U.S. economy is recovering and a low interest-rate policy will remain, and that’s giving a sense of relief to the market,”said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “Compared to the U.S., Japanese share valuations are cheap,” Nishi said.Stemming from Yellen’s comments, and despite the fact that shares here are comparatively cheap compared to their U.S. counterparts, other local brokers highlighted the fact that investors may not have chased the market higher pending further macroeconomic cues on the health of the U.S. economy. “Traders were at least comforted by her rather unwavering stance on tapering, but there is a lack of hard data showing that the U.S. economy’s rebound is in fact viable,”Naoki Fujiwara, a fund manager at Shinkin Asset Management said.
The 225-issue Nikkei Stock Average added 81.72 points from Monday to close at 14,800.06, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 15.32 points, or 1.27 percent, to finish at 1,219.60.Wall Street’s closing high overnight ensured buying sentiment here continued Wednesday and this was supported by the U.S. dollar rising to the mid-102 yen range from the lower 102 yen zone logged Monday, strategists here said.Exporters here cheer a weaker yen as it boost the competitiveness of their products in overseas markets and ensures profits are augmented when repatriated into Japanese currency.Toyota Motor Corp., the world’s largest carmaker,x431 GDS added 0.4 percent to 6,020 yen, despite having to recall almost 2 million of its ubiquitous Prius hybrid models to update control software.Honda, also largely exposed to overseas markets, gained 3.3 percent to 3,834 yen, while Nissan Motor Co. rose 2 percent to 903 yen, after announcing its group net profit for the April-December period grew 18 percent on robust sales and a weaker yen.Canon Inc. advanced 1.2 percent to 3,046 yen, while Sony jumped 3.7 percent to 1,765 yen, following the Nikkei newspaper reporting the firm may provide Apple with image sensing components for its next iPhone. Toshiba gained 1.4 percent to 428 yen and Panasonic was also among Wednesday’s gainers, adding 1.2 percent to close at 1,220 yen.Following Nomura upgrading its rating on the stock to “buy” Nippon Express leapt 4.6 percent to 480 yen, making it the biggest advancer in the Nikkei Wednesday, but plant construction maker Chiyoda lost ground on poor income and profit forecasts.Chiyoda retreated 3.2 percent to 1,501 yen, following the firm reporting a 6 percent drop in it’s April-December net income to 11.35 billion yen (110.8 million U.S. dollars). The firm maintained its full-year profit forecast at 16 billion yen, around 0.5 percent lower than its forecast a year earlier.Insurance companies found traction Wednesday, with Tokio Marine Holdings jumping 3.8 percent to 3,104 yen, while NKSJ Holdings advanced 3.4 percent to close at 2,699 yen.Trading volume on Wednesday rose to 2.34 billion shares on the Tokyo Exchange’s First Section, up from Monday’s volume of 2.Menstrual Cup18 billion shares, with advancing issues outnumbering declining ones by 1,374 to 319. Markets here were close Tuesday for a national holiday.