Japanese stocks surge on US, European gains, and weaker yen
By DPA, IANSWednesday, December 1, 2010
TOKYO - Japanese shares soared in Thursday morning trading, buoyed by a weaker yen and rallies in US and European markets.
The benchmark Nikkei 225 Stock Average added 178.07 points, or 1.78 percent, to trade at 10,166.12 while the broader Topix index was up 11.77 points, or 1.36 percent, at 877.84.
Exporters got a boost as the yen fell against the euro and the dollar. A weaker yen makes Japanese exports more competitive and improves overseas earnings when the revenues are repatriated.
Major stocks on Wall Street were bolstered by positive economic data Wednesday. The Federal Reserve’s Beige Book showed growth in 10 of 12 regions in recent weeks with an increase in industrial production and consumer spending.
The US is a major market for export-reliant Japan, accounting for 16 per cent of total shipments in October.
Investor sentiment was also boosted by a successful bond sale in Portugal, which temporarily eased worries about a European debt crisis.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 84.12-13 yen, up from Wednesday’s 5 p.m. quote of 83.57-58 yen.
The euro traded at $1.3124-3126, up from $1.3046-3047 Wednesday, and at 110.41-48 yen, up from 109.03-07 yen.
