Yen fall continues as global stocks rally

London

THE yen fell for the third straight day on Wednesday as a rally in global stock markets sapped demand for safe-haven assets, while the low-yielding euro also weakened as a recent unwinding of risky euro-funded carry trades took a breather.

Japan's Nikkei jumped 7.7 per cent, posting its biggest single-day gain in nearly seven years, after Prime Minister Shinzo Abe's comments raised hopes of more fiscal stimulus. That set the stage for a 2 per cent rally in European stocks with Wall Street also set for a rise.