Toyota Motor Corporation's (TM) stock soared 5.28% in pre-market trading on Wednesday, driven by a confluence of factors that boosted investor sentiment toward the Japanese automaker.
The primary catalyst for the rally was a weaker Japanese yen, which hit 149.83 against the US dollar during Tuesday's Tokyo trading session. A weaker yen is generally positive for export-oriented companies like Toyota, as it increases the value of their overseas earnings when repatriated back into yen.
Additionally, investors appeared to be pricing in expectations of an upcoming cash dividend payment announced by Toyota for its shareholders. The prospect of extra cash payouts tends to make a company's shares more attractive to income-oriented investors, potentially driving increased demand for the stock.
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