You are here
Tokyo: Nikkei closes up more than 7% on weak yen, BOJ buying
[TOKYO] Tokyo's benchmark Nikkei stock index soared more than 7 per cent on Tuesday, boosted by a weak yen and aggressive asset-buying from the Bank of Japan.
The Nikkei 225 index rose 7.13 per cent, or 1,204.57 points, to close at 18,092.35, while the broader Topix index was up 3.18 per cent, or 41.09 points, at 1,333.10.
Tokyo shares opened sharply higher as investors were encouraged by a weak yen against the US dollar and the Bank of Japan's (BOJ) buying of exchange-traded funds (ETFs), dealers said.
"Market sentiment remained positive for the rest of the day," Shinichi Yamamoto, a broker at Okasan Securities in Tokyo, told AFP.
"But it's unlikely for only Tokyo shares to recover while others are still struggling," Mr Yamamoto said.
On Monday, the Dow Jones Industrial Average sank 3.0 per cent amid partisan squabbling over a giant stimulus package as the Federal Reserve announced new emergency measures.
"We are expected to see ups and downs for now as a sign of an end to the outbreak has yet to be seen," Mr Yamamoto said.
The greenback was changing hands at 110.44 yen in afternoon trade, down from 111.26 yen in New York on Monday afternoon but still sharply higher than 105-107 yen ranges seen a week ago.
A cheaper yen is good for Japanese exporters as it makes their products more competitive abroad while inflating profits when repatriated.