Nitori Holdings shares surged in the Tokyo market on the morning of the 8th. Expectations that the yen's appreciation would reduce import costs drove inflows into stocks benefiting from a stronger yen.
Nitori Holdings shares rebounded sharply in the Tokyo market on the morning of the 8th. Funds have flowed into the company as a stock expected to benefit from lower import costs amid the yen's appreciation.
In morning trading, the yen reached around ¥153.80 to the dollar, its strongest level in about six months. The yen had already appreciated rapidly late the previous day, moving into the ¥154–155 range.
Market attention has focused on expectations of an additional Bank of Japan rate hike and differing views on the pace of future hikes. As a narrowing in the Japan-U.S. interest-rate gap is anticipated, the yen has been strengthening. Buying has also spread to groups of companies with high proportions of imported raw materials.
Nitori Holdings produces many of its products overseas, and a stronger yen could reduce its procurement costs. As a result, movements in the company's share price have drawn market attention.