Japanese stocks rise 1% as yen declines

Japanese stocks rose at the close by about 1% on Tuesday, September 12, and automakers led the gains, as the yen retreated from the highest level in a week to support the shares of export companies and risk appetite.

The Nikkei index rose 0.95% to close near the highest level it recorded during the session at 32,776.37 points.

The broader Topix index ended the session up 0.82% at 2,379.91 points.

The yen and stocks move in opposite directions, since the rise of the currency negatively affects the competitiveness of the shares of exporting companies and also makes the shares more expensive for foreigners.

Toyota Motor shares increased 2.4%, leading gains on the Topix index on Tuesday. The transportation sector index jumped 2.04%, becoming the most profitable among the Tokyo Stock Exchange sub-indices.

The shares of Sony Group, which manufactures games and audio equipment, rose 1.2%, while the shares of Uniqlo, which owns the Fast Retailing chain of stores, increased by more than 1%.

SoftBank Group Technology shares rose by about 2%.

Heavy equipment manufacturer IHI shares fell 15.8% and were the worst performers on the Nikkei index, while the steel industry index fell 0.7%.