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Tokyo stocks end up 2.80% as yen further weakens

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(Globalpost/GlobalPost)

Tokyo stocks surged 2.80 percent to close at its highest level in more than four years on Monday as a further drop in the yen's value ignited buying of exporters' shares.

The benchmark Nikkei 225 index gained 358.95 points to 13,192.59, while the Topix index of all first-section shares rose 3.33 percent, or 35.50 points, to 1,101.74.

It is the Nikkei's first close above 13,000 since August 2008.

The yen hit its lowest level in nearly four years against the dollar in Asia on Monday as traders continue to sell the unit following the Bank of Japan's sweeping monetary easing announcement last week.

The dollar rose into the 98-yen range for the first time since June 2009, offsetting poor US jobs data released Friday.

"The dollar's rise through 100 yen seems all but assured," said Toshiyuki Kanayama, a market analyst at Monex Inc.

The dollar was at 98.57 yen in afternoon trade, up from 97.54 yen in New York Friday afternoon, while the euro was up at 127.88 yen from 126.70 yen.

The Nikkei has now added more than 1,000 points since Tuesday's close.

"It wouldn't be wise to bet against the trend. However, if one did, real estate shares would be a good place to start selling," Kanayama told Dow Jones Newswires.

Shares in real estate companies, considered a beneficiary of the new government's active spending and monetary easing, have gained in recent months.

Sumitomo Realty & Development surged 8.10 percent to 5,070 yen.

Exporters were higher. Toyota rose 4.12 percent to 5,300 yen and Honda was up 3.67 percent at 3,805 yen, while Sony climbed 5.69 percent to 1,670 yen.

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http://www.globalpost.com/dispatch/news/afp/130408/tokyo-stocks-end-280-yen-further-weakens-0