Japanese stocks rise on US, European gains and weaker yen
By DPA, IANSTuesday, January 11, 2011
TOKYO - Japanese shares climbed in Wednesday morning trading after gains on US and European markets and a fall in the yen, which helped export-oriented issues.
The benchmark Nikkei 225 Stock Average gained 52.65 points, or 0.5 percent, to trade at 10,563.33 while the broader Topix index was up 6.87 points, or 0.74 percent, at 933.81.
Japan’s announcement Tuesday that it planned to purchase eurozone bonds to support Europe through its debt crisis helped boost the euro and ease pressure on European markets, traders said.
Indebted Ireland followed Greece last year in seeking a bailout backed by the International Monetary Fund and the European Central Bank. Concerns grew that Portugal would also need a bailout.
US stocks also rose Tuesday with investors expecting positive earnings outcomes for the fourth quarter as major US corporations began to release their figures this week.
The US is a major market for export-reliant Japan.
On currency markets at 9 a.m. (0000 GMT), the dollar traded at 83.35-37 yen, up from Tuesday’s 5 p.m. quote of 83.09-12 yen.
The euro traded at $1.2981-2983, up from $1.2930-2933 Tuesday, and at 108.22-25 yen, up from 107.46-50 yen.
A weaker yen lowers the price of Japanese goods sold abroad and improves overseas earnings when the revenues are repatriated.
