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Nikkei surges 3.1 per cent on falling yen, bank decision

Tokyo - Japan's benchmark Nikkei 225 Stock Average soared 3.1 per cent on Tuesday for the second straight trading day of increase, buoyed by the yen's decline and the central bank's monetary policy decision to boost special loan programmes.

The Nikkei gained 450.13 points, or 3.12 per cent, to end at 14,843.24 while the broader-based Topix index was up 31.95 points, or 2.68 per cent, at 1224. Exporters traded broadly higher as the yen fell against major currencies. A weaker yen makes Japanese goods more competitive overseas and improves repatriated revenues.

The Bank of Japan decided to maintain aggressive monetary-easing measures to prop up the world’s third-largest economy and overcome chronic deflation.

The central bank decided to extend its special loans for one year to encourage banks to spur lending to businesses with growth potential and support the economic recovery.

The bank also decided to double the size of fund provision to 7 trillion yen (68 billion dollars) from 3.5 trillion yen.

On currency markets at 3 pm (0600 GMT), the dollar traded at 102.66-70 yen, up from Monday’s 5 pm quote of 101.75-76 yen.

The euro was quoted at 140.72-74 yen, up from 139.44-45 yen late Monday, and at 1.3708-3710 dollars, up slightly from 1.3703-3704 dollars.

DPA


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