Tokyo stocks surge on yen's decline, Wall Street rally
Stocks in Tokyo rose sharply in Wednesday morning trading after the yen weakened and shares on Wall Street rallied the most in five years after a US interest-rate cut. ( dpa )
The Nikkei 225 Stock Average gained 328.57 points, or 2.75 per cent, to trade at 12,292.73. At one point in morning trading, the Nikkei rose more than 400 points.
The broader Topix index of all first-section issues was also up 35.04 points, or 3.01 per cent, at 1,198.67.
The jumps in Tokyo were seen after trading Tuesday in the United States saw the blue-chip Dow Jones Industrial Average soaring 3.51 per cent, the broader Standard & Poor's 500 Index 4.24 per cent and the technology-heavy Nasdaq Composite Index 4.19 per cent.
The gains came after the US central bank cut its benchmark interest rate and two leading investment firms posted earnings that assuaged fears about the US financial sector.
The Federal Reserve cut its benchmark interest rate by 0.75 points to 2.25 per cent in the latest of a series of dramatic attempts to boost the sagging US economy and temper volatility in global financial markets.
The cut helped the dollar surge the most against the yen in nine years. A lower yen helps Japanese exporters, boosting their overseas revenues.
On currency markets at 9 am (0000 GMT), the dollar was quoted at 99.80-85 yen, jumping from Tuesday's 5 pm quote of 97.60-62 yen.
The euro was quoted at 1.5655-50 dollars, down from Tuesday's 5 pm quote of 1.5753-56 dollars, and at 156.24-29 yen, up sharply from 153.76-80 yen.