Tokyo shares rise to fresh 3-month high on recovery hopes, weaker yen

SYDNEY, June 4 (Reuters) - Japanese stocks closed at their
highest in more than three months on Thursday, underpinned by a
weaker yen and signs of an economic rebound from a
coronavirus-led slump, but the rally lost some steam as
profit-taking set in.
The benchmark Nikkei average .N225 ended up 0.4% at
22,695.74 points, its highest close since Feb. 21, after
flitting between positive and negative territories earlier.
On Wednesday, data showed U.S. private payrolls fell less
than expected in May, suggesting layoffs were abating as
businesses reopen, which helped propel all the three major
indexes .SPX .DJI .IXIC on Wall Street. .N
In the currency market, the safe-haven yen weakened, with
the dollar/yen JPY=EBS hitting a fresh two-month high of
109.10 yen on Thursday and the euro/yen touching EURJPY=EBS a
4-1/2-month high of 122.625 yen overnight. FRX/
As a softer yen boosts Japanese manufacturers' profits made
abroad when repatriated, shares of blue-chip exporters were in
demand. Toyota Motor 7203.T rose 0.9%, Sony Corp 6758.T
added 1.6% and Murata Manufacturing 6981.T gained 2.2%.
The broader Topix .TOPX added 0.3% to 1,603.82, its
highest close since Feb. 26, with about two-thirds of the 33
sector sub-indexes on the Tokyo exchange finishing higher.
Financial stocks rose, with insurance .IINSU.T and banking
.IBNKS.T among the best-performing sectors on the main bourse.
Tokio Marine Holdings 8766.T advanced 2.8% and Mitsubishi UFJ
Financial Group (MUFG) 8306.T climbed 1.4%.
NEC Corp 6701.T jumped 3.8% after media reported that
British officials have discussed supplies of 5G networking
equipment with the Japanese firm and South Korea's Samsung
Electronics 005930.KS as part of a bid to develop alternatives
to China's Huawei Technologies HWT.UL . Leopalace21 8848.T slumped 13.6% as the apartment
development and leasing company cut its earnings estimates for
the financial year ended in March due to special losses.
It will release a full earnings report on Friday.
Elsewhere, the index of Mothers start-up shares .MTHR
dropped 1.3%, having marked its 1-1/2-year peak earlier this
week.