Tokyo Stocks Open Higher, Make Up Brexit Losses
Tokyo stocks jumped at the start of trading on Wednesday on stimulus hopes, erasing the steep losses sparked by Britain's vote to tear itself away from the European Union.
Market sentiment in Japan also got a solid boost from a weaker yen as well as gains in Europe and on Wall Street, where both the Dow and S&P 500 hit fresh records.
In opening deals, the benchmark Nikkei 225 index climbed 1.54 percent, or 247.35 points, to 16,343.00, building on two positive sessions.
The broader Topix index of all first-section shares rallied 1.56 percent, or 20.11 points, to 1,305.84.
Investors were keeping an eye on fresh signs of stimulus from Tokyo after Japanese Prime Minister Shinzo Abe said the government would draw up new measures to kick-start growth in the world's third-largest economy -- following a victory of his ruling coalition in parliamentary elections.
The package could be worth around 10 trillion yen ($97 billion), Japanese media said, though earlier reports put the possible amount at double that figure.
"Risk assets are rallying, driven by renewed hopes of monetary and fiscal stimulus," James Woods, a Sydney-based strategist at Rivkin Securities, told Bloomberg News.
"The rally looks sustainable... (Prime Minister Shinzo) Abe will definitely add some kind of fiscal stimulus to boost the Japanese economy."
Also on Tuesday, Abe met in Tokyo with former US Federal Reserve chief Ben Bernanke, saying he wanted to accelerate Japan's exit from deflation, according to local media.
On currency markets, the dollar edged down to 104.53 yen from 104.66 yen in New York, but was well up from 103.33 yen in Tokyo earlier Tuesday.
In share trading, Yamaha Motor soared as much as 10.4 percent to 1,695 yen on news that the motorcycle giant will replace electronics manufacturer Sharp on the Nikkei 225 Stock Average from next month.
In March, Sharp agreed to a buyout that will see Hon Hai, better known as Foxconn, take a majority stake after the Japanese industrial mainstay was pummeled by huge losses and mounting debts.
On Wednesday, Sharp's shares lost as much as 1.8 percent to 108 yen.
Source: Agence France Presse
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