Japanese shares rise more than 1 per cent on weaker yen
Feb 20, 2012, 6:28 GMT
Tokyo - Japanese stocks jumped more than 1 per cent Monday as export-oriented issues were bolstered by a weaker yen.
The benchmark Nikkei 225 Stock Average gained 100.92 points, or 1.08 per cent, to end at 9,485.09 while the broader Topix index was up 8.58 points, or 1.06 per cent, at 819.03.
Exporters got a boost as the yen fell, hovering around the mid-79-yen range to the dollar. A weaker yen makes Japanese goods less expensive abroad and improves repatriated earnings.
Sony Corp surged 3.57 per cent, construction machinery maker Komatsu Ltd rallied 3.02 per cent and Toyota Motor Corp jumped 1.98 per cent.
The strength of the yen was one of the reasons Japan logged its largest monthly trade deficit in January. The deficit amounted to 1.48 trillion yen (18.47 billion dollars) as exports dropped for a fourth-straight month by 9.3 per cent year-on-year to 4.51 trillion yen, the Finance Ministry said.
Imports rose 9.8 per cent to 5.99 trillion yen, driven by demand for fuel for thermal power generation after atomic reactors were shut down across the country following the March nuclear accident, the ministry said.
On currency markets at 3 pm (0600 GMT), the dollar traded at 79.51-52 yen, up from Friday's 5 pm quote of 79.07-08 yen.
The euro was quoted at 105.02-05 yen, up from 103.91-95 yen late Friday, and at 1.3209-3210 dollars, up from 1.3142-3143 dollars.