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Tokyo stocks surge sharply on weaker yen, U.S. market rebound

English.news.cn   2013-12-09 15:32:00            

TOKYO, Dec. 9 (Xinhua) -- Tokyo stocks ended with a sharp surge Monday as market sentiment was boosted by a further depreciated yen and a strong rebound on Wall Street on Friday following better- than-expected U.S. jobs data for November.

The 225-issue Nikkei Stock Average jumped 350.35 points, or 2. 29 percent, from Friday at 15,650.21.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 19.49 points, or 1.58 percent, higher at 1,255.32.

A further depreciated yen boosted the outlook of expert- oriented issues and spurred buying of such shares. The U.S. dollar traded at lower 103 yen level Monday, while the euro hovered at lower 141 yen level.

Brokers said investors were encouraged to chase share prices higher following U.S. stocks' sharp rises after a better-than- expected U.S. job data for November released earlier.

The U.S. market rose on Friday for first time in six trading day as the Dow Jones Industrial Average leapt 198.69 points, or 1. 26 percent, to 16,020.20. While the Standard & Poor's 500-stock Index jumped 20.07 points, or 1.12 percent, to 1,805.15.

The U.S. Labor Department released Friday a job data for November, showing the U.S. economy created a larger-than-expected 203,000 nonfarm jobs in November. The department also said the U.S. unemployment rate fell to 7.0 percent, a five-year low.

As to the speculation that the U.S. Federal Reserve will taper its monetary easing sooner due to recent positive economic data, analysts here said that negative viewers have already finished their position adjustment selling by Friday's trading session.

While positive observers, they said, considered that the strong U.S. economic data showed the country's economy is strong enough to justify such a change in the Fed's monetary policy.

Meanwhile, the Japanese government on Monday downgraded the country's July-September economic growth read to an annualized rate of 1.1 percent, down from 1.9 percent released last month.

Stock market showed only a muted reaction to the downgrade as it reacted to the U.S. stock rally and the weaker yen much more than to the disappointing domestic data, analysts said.

On Monday, gainers were led by the paper and pulp, mining, and rubber industries sectors, while the utility industry was the only decliner.

Advancing issues outnumbered declining ones 1,426 to 235 on the First Section, while 104 closed unchanged.

As to export-oriented issues, Sony gained 24 yen, or 1.3 percent, to 1,862 yen, while Panasonic advanced 14 yen, or 1.2 percent, to 1,187 yen. Toyota Motor and Honda Motor also rose more than 1 percent.

NTT Docomo went up 34 yen, or 2.1 percent, to 1,653 yen, aided by a greater net subscription gain in November than the previous month.

Kawasaki Heavy Industries surged 13 yen or 3.2 percent to 425 yen following the company's announcement that it will construct a new factory to produce fuselages for the Boeing 787 aircraft in Aichi Prefecture, central Japan.

Brokerage shares also fared well, with Nomura Holdings rising 5 yen, or 0.6 percent, to 791 yen while Daiwa Securities Group rose 19 yen, or 2.0 percent, to 990 yen.

Trading volume on the main section came to 2,114.25 million shares, up from Friday's 2,058.57 million shares.

The turnover was about 1,975.9 billion yen (about 19.19 billion U.S. dollars).

Editor: Shen Qing
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