Tokyo shares rise following gains on Wall Street

Tokyo, Oct 4, 2010 (Calcutta Tube/DPA) Japanese stocks climbed in Monday morning trading following gains on Wall Street and as exporters were boosted by a fall in the value of the yen.

The benchmark Nikkei 225 Stock Average gained 81.84 points, or 0.87 percent, to trade at 9,486.07 while the broader Topix index was up 2.8 points, or 0.34 percent, at 832.77.

The Bank of Japan’s two-day policy meeting was to start later Monday. Investors were cautious ahead of the meeting, focusing on whether the central bank would decide to take additional monetary easing steps to address a slowing economy and the yen’s appreciation in recent years.

On currency markets at 11 a.m. (0200 GMT), the dollar traded at 83.75-80 yen, up from Friday’s 5 p.m. quote of 83.33-34 yen.

The euro traded at $1.3755-3758, up from $1.3679-3681 Friday, and at 115.23-28 yen, up from 113.99-114.03 yen.

A weaker yen makes Japanese exports more competitive, and improves Japanese companies’ overseas profits when the revenues are repatriated.

Leave a Reply

Your email address will not be published. Required fields are marked *