Tokyo stocks close jump 2.29pc

December 09, 2013 - 9:08:05 am

TOKYO: Tokyo stocks jumped 2.29 percent Monday with a strong lead from Wall Street and as a weaker yen gave exporter shares a lift.

The benchmark Nikkei 225 index added 350.35 points to 15,650.21, while the Topix index of all first-section shares was up 1.58 percent, or 19.49 points, to 1,255.32.

"The Nikkei is in a buy zone after falling sharply last week and supply and demand conditions are good," Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, told Dow Jones Newswires.

Tokyo's rise tracked a strong showing in New York on Friday after an upbeat jobs report buoyed investor sentiment, while fuelling expectations that the Federal Reserve will soon start reeling in its stimulus drive.

US job creation was greater than expected in November, and the unemployment rate dropped to 7.0 percent from 7.3 percent, as the Fed considers when to rein in its $85 billion-a-month monetary easing programme.

Speculation over a sooner-than-later draw down has helped boost the dollar against the yen, giving a lift to Japanese exporters.

A weaker yen helps makes them more competitive overseas and inflates repatriated earnings.

Sony shares were up 1.30 percent to 1,862 yen, Toyota rose 1.28 percent to 6,300 yen while Uniqlo clothing chain operator Fast Retailing jumped 3.33 percent to 38,700 yen.

In forex trade, the greenback fetched 103.06 yen in afternoon Tokyo trade, up from 102.85 on Friday afternoon in New York.

Investors appeared to shrug off the Japanese government's downward revision of third-quarter economic growth to 0.3 percent from a preliminary estimate of 0.5 percent.

The US jobs data Friday helped power the Dow Jones Industrial Average to a 1.26 percent rise to 16,020.20. (AFP)

 

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