Tokyo Stocks Higher After Easing Yen and Stimulus Promises

Tokyo stocks closed over 2 percent higher Tuesday, with the Nikkei index recovering to the 16,000 level for the first time since late June, on an easing yen and growing hopes for fresh government stimulus following the ruling bloc’s upper house election victory.

The 225-issue Nikkei Stock Average ended up 386.83 points, or 2.46 percent, from Monday at 16,095.65. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 29.94 points, or 2.38 percent, higher at 1,285.73.

Every industry category on the main section except food issues gained ground, led by miscellaneous product, financial stock and banking issues.

Tokyo stocks rose sharply for the second consecutive day after Prime Minister Shinzo Abe said Monday the government will compile a fresh stimulus package to underpin growth. His ruling coalition won convincingly in the House of Councillors election on Sunday.

The benchmark Nikkei had fallen below the 16,000 mark amid the global market rout following last month’s British vote to leave the European Union.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza