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Japan stocks soar as emerging economy currencies rally

DPA Tokyo | Updated on March 13, 2018 Published on January 29, 2014

Japanese shares surged on Wednesday for the first rise in five trading days as market sentiment was buoyed by receding worries about emerging economies.

The benchmark Nikkei 225 Stock Average gained 403.75, or 2.7 per cent, to end at 15,383.91 while the broader-based Topix index was up 31.87 points, or 2.6 per cent, at 1,256.18.

Emerging-economy currencies rose on Wednesday, led by the lira after Turkey boosted base interest rates to keep capital in the country.

The currency rose 3.9 per cent in the course of the trading day in Tokyo, after the announcement in Turkey at midnight (2200 Tuesday GMT).

India on Tuesday also raised its repurchase rate, charged by the federal bank on loans to commercial banks, by 25 basis points to 8 per cent, leading to a rally in the rupee.

In Japan on Wednesday, export-linked stocks were bolstered by the yen’s fall against major currencies. A weaker yen makes Japanese goods more competitive overseas and improves repatriated revenues.

On currency markets at 3 pm (0600 GMT), the dollar traded at ¥103.36-40, up from Tuesday’s 5 pm quote of ¥102.77-79.

The euro was quoted at ¥141.20-21, up from ¥140.42-45 late Tuesday and at $1.3660-3661, little changed from $1.3664-3665.

Published on January 29, 2014
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