Markets

Japanese shares soar on weaker yen, corporate tax cut report

DPA Tokyo | Updated on March 12, 2018 Published on August 13, 2013

Japanese stocks surged on Tuesday as sentiment was lifted by the yen’s slide and a news report that the Government was considering slashing the corporate tax rate.

The benchmark Nikkei 225 stock average gained 347.57 points, or 2.57 per cent, to end at 13,867 while the broader-based Topix index was up 22.53 points, or 1.99 per cent, at 1,157.15.

Exporters were bolstered by the yen’s fall against major currencies. A weaker yen makes Japanese goods more competitive overseas and improves repatriated revenues.

Prime Minister Shinzo Abe called for a study on cutting the corporate tax as a confidence-boosting counterweight to a sales tax hike, the Nikkei business daily reported earlier in the day, citing unnamed government sources.

On currency markets at 3 p.m., the dollar traded at 97.47-48 yen, up from Monday’s 5 p.m. quote of 96.75-76 yen.

The euro was quoted at 129.68-70 yen, up from 128.75-79 yen late Monday and at 1.3304-3306 dollars, little changed from 1.3306-3307 dollars.

Published on August 13, 2013
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