At a time when the yen continues to weaken, thus boosting the earnings potential for exporters, the benchmark Nikkei index rose two percent to 15,096, with carmaker Toyota and consumer electronics giant Sony leading the gains.
Since Japanese Prime Minister Shinzo Abe took office in December of last year Japan’s central bank has embarked on an aggressive plan to weaken the nation’s currency. A weaker yen translates into higher earnings for companies when the funds are repatriated back into the country, while also making their products more competitive overseas.
News of the Nikkei index’s rise comes on the heels of several other positive developments for companies operating in the country.
Shares of Isuzu Motors recently climbed 20 percent after it posted a record full year net profit of $946 million, driven by strong overseas sales, while Sony’s shares have also surged after one of the company's biggest shareholders suggested the firm should spin off up to 20 percent of its entertainment business, and use the funds to shore up its struggling electronics arm.
