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Tokyo stocks up 0.75% by the break

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(Globalpost/GlobalPost)

Tokyo stocks rose 0.75 percent Tuesday morning, taking a lead from Wall Street and after pro-easing comments from the men nominated to take over as the Bank of Japan's new leadership.

The benchmark Nikkei 225 index added 86.83 points at 11,739.12 by the break, while the Topix index of all first-section shares climbed 0.27 percent, or 2.67 points, to 994.92.

The Nikkei was likely to remain stable with an upside bias after US stocks climbed, with the Dow moving to within a whisker of its record high and as the dollar and euro remained strong against the yen, brokers said.

"The yen remains on a trajectory for further weakening, which should continue to support stock prices," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

The yen has been under pressure on expectations that the Bank of Japan (BoJ) will adopt fresh credit easing measures as it prepares for a change of leadership.

Haruhiko Kuroda, a finance veteran the government has nominated to head the central bank, told Japan's parliament Monday that if confirmed as BoJ head, he would do "everything possible" to reverse years of growth-sapping deflation.

And on Tuesday, Hiroshi Nakaso, one of Kuroda's proposed deputies, told lawmakers he was open to new ideas to beat deflation, which he called the BoJ's "important mission".

"This is a golden opportunity to achieve our long-time goal -- getting out of deflation," Nakaso said.

The second proposed BoJ deputy, Kikuo Iwata, echoed Kuroda in saying that the bank should take bolder easing steps to meet a two-percent inflation target within a couple of years.

On Monday in New York, the blue-chip Dow defied the effects of new US spending cuts and pushed up 0.27 percent to 14,127.82, its second-highest close and less than 40 points off its all-time high set in October 2007.

In Tokyo Sony slipped 1.18 percent to 1,421 yen a day after saying it would sell its stake in social networking firm DeNA to brokerage giant Nomura.

Nomura was down 0.36 percent at 552 yen, while All Nippon Airways was up 1.04 percent to 193 yen, automaker Nissan climbed 0.42 percent to 949 yen and Canon added 1.04 percent to 3,385 yen.

In late morning forex trade, the greenback, which has surged against the yen in recent months, weakened slightly to 93.36 yen from 93.46 yen in New York Monday afternoon.

The euro bought 121.62 yen and $1.3026 compared with 121.74 yen and $1.3024.

-- Dow Jones Newswires contributed to this article --

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http://www.globalpost.com/dispatch/news/afp/130304/tokyo-stocks-075-the-break