Japanese shares rise on weaker yen, US employment data
By DPA, IANSThursday, January 6, 2011
TOKYO - Japanese stocks jumped in Thursday morning trading, surpassing the 10,500 level for the first time in eight months, with exporters bolstered by a weaker yen and better-than-expected US employment data boosting investor sentiment.
The benchmark Nikkei 225 Stock Average gained 121.29 points, or 1.17 percent, to trade 10,502.06 while the broader Topix index was up 9.72 points, or 1.07 percent, at 921.41.
Overnight, US stocks ended higher, supported by a report from private group ADP Employer Services, which showed the economy added 297,000 jobs in December, an upbeat indicator ahead of the Labour Department’s own monthly estimate, due Friday. The US jobless rate is currently at 9.8 percent.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 83.19-24 yen, up from Wednesday’s 5 p.m. quote of 81.95-96 yen.
The euro traded at $1.3154-3156, down from $1.3271-3272 Wednesday, and at 109.42-46 yen, up from 108.76-80 yen.
A weaker yen makes Japanese exports more competitive and improves overseas earnings when the revenues are repatriated.
