(Bloomberg) -- Japanese stocks driven by domestic demand, including furniture chain Nitori Holdings Co., climbed after the yen’s sudden surge overnight boosted speculation the currency will strengthen and lower import costs.
Nitori gained as much as 5.6% in Tokyo on heavy volume, the most since February. The stock had fallen 12% this year through Thursday, even as the broader market reached new highs, as the weakening yen eroded its profitability. Nitori earlier this year said in an earnings report that currency moves impacted its purchasing cost and inventory, affecting ordinary profit by ¥38 billion ($239 million).
It’s possible the negative impact is starting to peak out for companies whose earnings performance has been hindered by the weaker yen, said Ikuo Mitsui, a fund manager at Aizawa Securities Co.
Other domestic demand-reliant sectors including real estate, agriculture and construction were the best performers on the Topix index, on a day when the broader gauge fell as much as 1.5%.
The yen was volatile Friday as the Bank of Japan conducted so-called rate checks with traders, reinforcing perceptions that authorities intervened in the market to prop up the currency. It surged as much as four yen against the dollar on Thursday in the minutes after a softer-than-expected reading of US inflation.
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