Japanese shares surge on weaker yen, Asia gains

Feb 15, 2012, 6:29 GMT

Tokyo - Japan's benchmark Nikkei 225 Stock Average soared 2.3 per cent Wednesday as market sentiment was bolstered by a weaker yen and gains on other Asian markets.

The Nikkei gained 208.27 points to end at 9,260.34 while the broader Topix index was up 16.16 points, or 2.05 per cent, at 802.96.

Both the Nikkei and the Topix advanced further in the afternoon as Asian markets gained. By midafternoon, Hong Kong's Hang Seng Index had jumped 1.96 per cent and South Korea's Kospi Index had climbed 1.08 per cent.

Exporters, such as Toyota Motor Corp and Sony Corp, rose strongly as the yen fell against major currencies, standing in the mid-78-yen range to the dollar.

A weaker yen makes Japanese goods less expensive abroad and improves repatriated revenues.

Toyota surged 4.65 per cent, and Sony gained 5.7 per cent.

The yen started to decline after the Bank of Japan on Tuesday decided on additional monetary easing.

On currency markets at 3 pm (0600 GMT), the dollar traded at 78.42-43 yen, up from Tuesday's 5 pm quote of 77.96-99 yen.

The euro was quoted at 103.37-40 yen, up from 102.54-58 yen late Tuesday, and at 1.3178-3183 dollars, up from 1.3153-3155 dollars.