Tokyo stocks close 1.13% higher
Thursday, 25 October 2012
TOKYO: Tokyo stocks rose 1.13 percent on Thursday, boosted by a weaker yen and speculation of further monetary easing by the Bank of Japan, as the world's third-largest economy struggles to gain traction.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange added 100.90 points to 9,055.20, while the broader Topix index of all first-section shares advanced 1.1 percent, or 8.15 points, to 751.42.
"Hopes for more Bank of Japan monetary easing will continue to support the market for the time being," Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, told Dow Jones Newswires.
The Japanese central bank is widely expected to take further easing steps at a policy meeting next week in an effort to boost the economy and fight the stubborn deflation that has bedevilled Japan for years.
Tokyo's rise bucked a fall on Wall Street, where the Dow fell 0.19 percent on Wednesday as weak US corporate earnings dragged on sentiment.
The US Federal Reserve said Wednesday it would stick to its $40 billion a month bond-buying programme -- known as quantitative easing -- for as long as needed and keep interest rates at record lows until least 2015.
Markets won a measure of support from Greece's finance minister saying Wednesday that an agreement had been reached with Athens' international creditors granting more time to fix the debt-crippled nation's finances -- although the IMF and European Union disputed that the deal had been finalised.
In Tokyo trade, Sharp Corp. fell 4.19 percent to 160 yen after a report said the consumer electronics giant lost 400 billion yen ($5.0 billion) in the first six months of its fiscal year, nearly double its earlier projection.
Videogame giant Nintendo shrugged off earlier losses to end 3.2 percent higher at 10,620 yen, a day after cutting its earnings outlook for the fiscal year to March by 70 percent.
A weaker yen helped some firms with overseas operations.
Toyota Motor was up 1.29 percent to 3,135 yen, Toshiba gained 2.12 percent to 289 yen and Fast Retailing, operator of the Uniqlo cheap chic clothing chain, added 2.58 percent to 17,850 yen.
On currency markets, the euro bought $1.3004 and 104.22 yen, up from $1.2972 and 103.49 yen in New York late Wednesday.
The dollar rose to 80.14 yen from 79.79 yen in New York to hit its highest level in over three months. (AFP)