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Tokyo stocks up 0.59% by break

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(Globalpost/GlobalPost)

Tokyo stocks gained 0.59 percent Monday morning after the government's nominee to lead the Bank of Japan (BoJ) vowed to do "everything possible" to conquer the country's long-running deflation.

The benchmark Nikkei 225 index added 68.52 points to 11,674.90 by the break, while the Topix index of all first-section shares increased 1.11 percent, or 10.88 points, to 995.21.

"The market continues to benefit from growing expectations that the new-look central Bank of Japan is aggressively committed to monetary easing," said CLSA equity strategist Nicholas Smith.

Haruhiko Kuroda, nominated last week to head the central bank, on Monday hit at at previous BoJ management for failing to reverse years of falling prices, telling parliament: "I want to make it clear that we will do everything possible to get rid of deflation."

The 68-year-old Kuroda, an experienced finance veteran who has announced his resignation as head of Manila-based Asian Development Bank, is widely expected to be confirmed by parliament as Japan's top central banker in the coming weeks.

The yen initially weakened on his comments in Asian forex trade, which stoked easing speculation, but the unit quickly reversed course.

"We've been expecting a lot from Kuroda...and what he said was well within expectations but offered no big surprises," a senior dealer at a major bank in Tokyo told Dow Jones Newswires.

In currency trading, the dollar weakened at 93.33 yen from 93.59 yen in New York Friday, while the euro fetched 121.47 yen from 121.92 yen.

Markets were also looking to a eurozone finance ministers' meeting later in the day after $85 billion in budget cuts came into effect in the United States Friday, with US lawmakers unable to compromise on a less painful deal.

Meanwhile, the Osaka Stock Exchange temporarily suspended futures and Nikkei options trading on Monday morning due to a computer glitch, but the trouble did not appear to seriously dent market activity.

In Tokyo trade, real estate shares gained with Mitsubishi Estate soaring 5.10 percent to 2,575 yen while Mitsui Fudosan jumped 3.82 percent to 2,527 yen.

Electronics giant Sony was up 3.66 percent to 1,441 yen, Canon slipped 0.29 percent to 3,365 yen, Toyota gained 0.52 percent to 4,775 yen while brokerage giant Nomura Holdings was up 1.81 percent to 560 yen.

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http://www.globalpost.com/dispatch/news/afp/130303/tokyo-stocks-059-break-0