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Nikkei hits new ending high on weakening yen, monetary easing hope

English.news.cn   2013-12-03 15:56:16            

TOKYO, Dec. 3 (Xinhua) -- Tokyo stocks closed higher on Tuesday with Nikkei hitting a fresh six-year closing high as buying was spurred by a weakening yen and growing expectations of additional monetary easing by the Bank of Japan.

The 225-issue Nikkei Stock Average ended up 94.59 points, or 0. 60 percent, from Monday at 15,749.66, its highest closing since Dec. 12, 2007.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished up 3.60 points, or 0.29 percent, at 1,262.54.

Nikkei's rebound, after a slightly declining in the previous trading day, was triggered by the yen's further falling against other major currencies, which lifted sentiment over export- oriented issues.

The U.S. dollar traded at upper 102 yen level in the morning and topped 103 yen range by noon, after briefly broke the threshold overnight in New York since late May, while the euro changed hand at upper 139 yen level.

Meanwhile, an expectation on additional monetary easing policy by Japan's central bank, the Bank of Japan (BOJ), also boosted the market's sentiment.

BOJ chief Haruhiko Kuroda suggested Monday that the central bank may not end its ultra loose monetary policy before fiscal year 2015.

He vowed that the BOJ will continue with its policy "as long as it is necessary for maintaining the target in a stable manner," and might adopt further measures if the situation does not improve as expected.

The BOJ said Tuesday that Japan's monetary base rose 52.5 percent in November from a year earlier to a record 1.84 trillion dollars due to the central bank's ultra loose monetary policy aimed at beating Japan's prolonged deflation.

It said that it has set monetary base as the main target for its monetary policy and it will double the monetary base within two years in a move to combat the country's deflation.

Analysts said that a growing expectation on BOJ's additional easing policy remains in the market before the planned tax hike in April, adding the yen's falling, a result of the ultra loose monetary policy, would continue and would result in a firm shares market.

On Tuesday, gainers were led by paper and pulp, information and technology, and rubber sectors, while decliners included utility, air transport, and real estate issues.

Among exporters, Panasonic advanced 20 yen, or 1.7 percent, to 1,186 yen, Canon added 20 yen, or 0.6 percent, to 3,390 yen, while Toyota Motor gained 20 yen, or 0.3 percent, to 6,390 yen.

Paper shares performed well, with Oji Holdings moving up 12 yen, or 2.5 percent, to 495 yen, and Hokuetsu Kishu up 9 yen, or 1.9 percent, to 496 yen.

Catalogue and online retailer Nissen Holdings jumped by a daily- limit of 80 yen, or 25.2 percent, to 397 yen, as buying was bolstered by Seven & i Holdings Co.'s announcement that it will acquire a majority stake in Nissen through a takeover bid for 410 yen per share.

Meanwhile, Seven & i closed the day unchanged at 3,765 yen.

Online shopping mall operator Rakuten failed to gain in its debut on the Tokyo bourse's first section, finishing its first trading day on the first section at 1,540 yen, down 2 yen, or 0.1 percent from its closing price on Monday on the JASDAQ.

Trading volume on the main section came to 2,689.63 million shares, up from Monday's 2,306.00 million shares.

The turnover was about 2,415.8 billion yen (about 23.41 billion U.S. dollars).

Related:

Nikkei ends mixed after recent upsurge

TOKYO, Dec. 2 (Xinhua) -- Tokyo stocks ended narrowly mixed on Monday afternoon following the market's recent upsurge.Full Story

Nikkei ends slightly lower on Monday morning

TOKYO, Dec. 2 (Xinhua) -- Tokyo stocks ended 0.12 percent lower in the morning session of Monday as investors were wary of overheating following the market's recent upbeat.Full Story

Editor: Mengjie
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