Tokyo stocks close up 2.19pc
October 28, 2013 - 9:23:40 am
TOKYO: Tokyo stocks closed 2.19 percent higher on Monday, boosted by a rally on Wall Street and a weaker yen.
The benchmark Nikkei 225 index soared 307.85 points to 14,396.04, while the Topix index of all first-section shares climbed 1.70 percent, or 20.08 points, to 1,198.36.
"Amid a lack of fresh trading cues even small dollar movements are amplified, triggering buybacks after shares were oversold last week," said Daiwa Securities chief strategist Junya Naruse.
The Nikkei lost more than three percent last week.
In currency trading, the dollar bought 97.60 yen, up from 97.43 yen in New York Friday afternoon, helping exporters.
Toyota was up 1.77 percent at 6,310 yen, Canon added 2.27 percent to 3,150 yen, and Uniqlo clothing chain operator Fast Retailing rose 3.26 percent to 33,200 yen.
Sony jumped 3.18 percent to 1,910 yen after Credit Suisse upgraded its view of the electronics giant's shares
Mizuho Financial Group rose 2.45 percent to 209 yen after weekend media reports said its banking unit would punish more than 50 current and former senior executives over a loans scandal involving organised crime figures.
The lender's stock benefitted from the rise in the broader market Monday after taking a hit on the scandal last week, said an analyst at a Japanese brokerage.
In New York Friday the S&P 500 hit a new record high on strong corporate earnings and expectations of continued loose monetary policy from the Federal Reserve.
The index added 0.44 percent to 1,759.77, while the Dow rose 0.39 percent to 15,570.28.
The Fed's two-day monetary policy meeting opens Tuesday, and investors will pore over its decision for an idea of when it will start cutting back its $85 billion-a-month bond-buying scheme.
There had been widespread belief it would begin tapering by December at the latest, but analysts say weak jobs data and this month's government shutdown has made that unlikely. (AFP)