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Tokyo stocks up 1.01% by break

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(GlobalPost/GlobalPost)

Tokyo stocks rose 1.01 percent on Wednesday morning after Wall Street rebounded from a sharp sell-off in the previous session.

The Nikkei 225 index at the Tokyo Stock Exchange was up 133.88 points to 13,355.32 by the break, while the Topix index of all first-section issues gained 1.12 percent, or 12.56 points, to 1,131.76.

Analysts said upbeat economic numbers from the United States and the weaker yen were providing support after huge selling on Monday after China released worse-than-forecast economic growth data.

"Economic data out of the US, such as new home construction starts and (March) industrial production, came in better than expected," SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.

"The yen looks like it is ready to resume its weakening trend," he added.

The Wall Street gains ended a two-day losing streak, with Monday's losses on the Dow the steepest in five months, as selling was fuelled partially by a double bomb attack in Boston that killed three people and wounded more than 180.

On Tuesday the Dow rose 1.08 percent, while the S&P 500 climbed 1.43 percent back towards recent record highs. The tech-based Nasdaq added 1.50 percent.

US traders welcomed solid housing starts data and good earnings reports from giants including Coca-Cola, Johnson & Johnson and Intel.

"The Boston bombing event was a one-off, and even the China (growth) data and commodity market performance are being discounted in the face of good to non-disappointing earnings from Intel and other US corporates," Tachibana Securities market analyst Kenichi Hirano told Dow Jones Newswires.

"Technically speaking, trend lines remain very much intact for both Wall Street and Nikkei bourses, which inspires investor confidence."

The dollar resumed its advance in Asia, providing a fillip to Japanese exporters.

The greenback was changing hands at 98.21 yen in Asia, compared with 97.79 yen in New York Tuesday afternoon and well up from as low as 96 yen earlier in the week.

The euro was at 129.38 yen and $1.3172 Wednesday against 128.86 yen and $1.3180.

Nomura Holdings was down 1.16 percent at 763 following news that Italian financial police have impounded about 1.8 billion euros from one of its local units.

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http://www.globalpost.com/dispatch/news/afp/130417/tokyo-stocks-101-break