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Tokyo shares up 2.25% by break

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(Globalpost/GlobalPost)

Tokyo shares surged 2.25 percent Monday thanks to a weaker yen after G20 talks that averted any criticism of Japan over the recent slide in its currency.

The benchmark Nikkei 225 index added 251.61 points to 11,425.44 by the break, while the Topix index of all first-section shares jumped 2.17 percent, or 20.47 points, at 962.88.

In foreign exchange trade, the dollar strengthened to 94.10 yen, from 93.53 yen in New York on Friday, while the euro bought 125.53 yen from 124.97 yen.

Bargain hunters also moved in after the headline index dropped 1.18 percent on Friday as fears grew that the G20 meeting in Moscow would see Japan accused of manipulating its currency to boost Japanese exports.

A communique from the meeting refrained from singling out Japan despite heavy criticism, particularly in Europe, over the new government's loose monetary policy, which some have charged is being used to weaken the yen.

The new government of Shinzo Abe, as well as the central bank, have repeatedly denied the claims.

"We will refrain from competitive devaluation," the statement said, adding that we "will not target our exchange rates for competitive purposes."

The Nikkei index was tipped to rise on the back of the softer-than-feared tone of the statement, said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.

"Japan wasn't mentioned by others," he told Dow Jones Newswires. "The results were largely positive for Japan."

Wall Street put in a mixed session Friday, with the Dow Jones Industrial Average inching 0.06 percent higher at 13,981.76, while the broad-based S&P 500 was down 0.10 percent.

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http://www.globalpost.com/dispatch/news/afp/130217/tokyo-shares-225-break