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TOKYO (Reuters) – Japan’s Nikkei share average was marginally higher on Wednesday as caution ahead of the country’s upcoming lower house election results dulled automakers’ shine.
The Nikkei was up 0.11% to 38,453.66 as of 0052 GMT.
The yen fell overnight to 151.19 per U.S$., its lowest since July 31. A softer yen tends to help exporter shares as it increases the value of overseas profits in yen terms when firms repatriate them to Japan.
“With a weaker yen, investors could become more positive about domestic stocks,” said Seiichi Suzuki, chief equity market analyst at the Tokai Tokyo Intelligence Laboratory.
“But they stayed away from making active bets as they awaited the outcome of the general election. That capped today’s gains and this trend will continue this week.”
Prime Minister Shigeru Ishiba dissolved the lower house of parliament on Oct. 9, setting up the snap election on Oct. 27.
Local media reported that the ruling Liberal Democratic Party (LDP) and its coalition partner Komeito may lose their majority in the election.
The broader Topix was up 0.17% to 2,656.02, with Toyota Motor rising 3.85% to become the biggest boost to the index. Honda Motor rose 2.98%.
Automakers added 2.95% to become the best performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.
Among the Nikkei heavyweights, staffing agency Recruit Holdings fell 2.75% and Uniqlo-owner Fast Retailing slipped 0.29%.
Home interior goods retailer Nitori Holdings, whose share prices are affected by a weaker yen as it imports most materials for its products from abroad, fell 1.25%.
