Nikkei hits 39K amid weaker yen, Wall Street gains

(MENAFN) Japan's Nikkei index experienced a rise at the close of Monday's session, reaching the 39,000 mark for the first time since late July. This increase was buoyed by the combination of a weaker yen and positive gains on Wall Street from the previous Friday. The Nikkei ended the day with a modest gain of 0.1 percent, closing at 38,700.87 points. Earlier in the day, it had peaked at 39,080.64 points, marking its highest level since July 31. The session saw volatility due to profit-taking and the yen stabilizing after a previous decline.

The rise in Wall Street's performance on Friday was driven by new economic data that heightened expectations for a modest interest rate cut by the Federal Reserve in September. This data also contributed to a stronger dollar against the yen, which in turn benefited Japanese exporters. The depreciation of the yen enhances the value of profits earned abroad when converted back to yen, providing a significant boost to Japanese companies with substantial export activities.

Despite a sharp decline in global stock markets earlier last month, driven by concerns of a potential recession in the world's largest economy, recent positive economic data has improved optimism about the U.S. economic recovery. Investors are now looking ahead to upcoming U.S. labor market reports, including weekly unemployment claims scheduled for Thursday and the August nonfarm payrolls report due on Friday, which are expected to provide further insights into the economic landscape. 

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