Connect to share and comment

Tokyo stocks open up 0.88%

PlacardEnlarge
(Globalpost/GlobalPost)

Tokyo stocks opened 0.88 percent higher on Tuesday as the yen continued to drop after the bank of Japan's aggressive monetary easing.

The Nikkei 225 index at the Tokyo Stock Exchange, which closed above 13,000 for the first time since August 2008 on the previous day, added 116.54 points to 13,309.13 at the start.

The benchmark index may rise to 13,500 as the yen continues to weaken, said Kenichi Hirano, market analyst at Tachibana Securities.

"The dollar/yen may rise above 100," he said. "Spanish and Italian government bond yields are falling as well. The yen is weakening and stock gains are likely to continue gradually," he told Dow Jones Newswires.

The yen has fallen to its lowest level since May 2009 against the dollar after the Bank of Japan announced bold monetary easing steps last week.

The dollar was at 99.64 yen in early trade, up from 99.36 yen in New York Monday afternoon, and the euro soared to 129.48 yen from 129.23 yen.

Against the dollar, the European common currency was at $1.3033 compared with $1.3005 in US trade.

The Dow Jones Industrial Average finished at 14,613.48, up 48.23 points or 0.33 percent on Monday in anticipation of the earnings season, which kicks off this week.

bur-mis/mtp

http://www.globalpost.com/dispatch/news/afp/130408/tokyo-stocks-open-088