AFP, Tokyo :
Tokyo stocks opened sharply higher Friday, following overnight gains on Wall Street and in Europe on hints of additional central bank stimulus and a rise in oil prices from 12-year lows. Tokyo’s benchmark Nikkei 225 index received an extra boost amid speculation Japan’s central bank is considering taking fresh measures to counter the impact of falling oil prices. The Nikkei advanced 3.13 percent, or 500.27 points, to 16,517.53 in late morning trade, while the broader Topix index of all first-section shares gained2.88 percent, or 37.49 points, to 1,338.98. Analysts said they expected the blue-chip Nikkei to bounce back after diving into bear territory this week-marked by a decline of more than 20 percent from highs in June.”The cavalry might be coming to the rescue in terms of the central banks starting to sound more dovish,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors, told Bloomberg TV. “There’s a little bit of light at the end of the tunnel. We’ve probably seen the worst and by the end of the year things will be a lot brighter than they are now.” Friday’s early gains were a welcome shift after a battering Thursday that pushed the Nikkei more than two percent down to finish at its lowest close in nearly 15 months.The yen weakened as market sentiment improved, after touching a one-year high against the dollar on Wednesday. The greenback was hardly changed at 117.67 yen from 117.66 yen Thursday in New York. On Thursday, European Central Bank chief Mario Draghi boosted markets after saying there “are no limits” to how far the institution will go with its policy tools, suggesting more stimulus. Dealers are now keeping tabs on the Bank of Japan’s first policy meeting of the year, which is slated for Thursday and Friday next week, amid speculation of fresh monetary stimulus.
Tokyo stocks opened sharply higher Friday, following overnight gains on Wall Street and in Europe on hints of additional central bank stimulus and a rise in oil prices from 12-year lows. Tokyo’s benchmark Nikkei 225 index received an extra boost amid speculation Japan’s central bank is considering taking fresh measures to counter the impact of falling oil prices. The Nikkei advanced 3.13 percent, or 500.27 points, to 16,517.53 in late morning trade, while the broader Topix index of all first-section shares gained2.88 percent, or 37.49 points, to 1,338.98. Analysts said they expected the blue-chip Nikkei to bounce back after diving into bear territory this week-marked by a decline of more than 20 percent from highs in June.”The cavalry might be coming to the rescue in terms of the central banks starting to sound more dovish,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors, told Bloomberg TV. “There’s a little bit of light at the end of the tunnel. We’ve probably seen the worst and by the end of the year things will be a lot brighter than they are now.” Friday’s early gains were a welcome shift after a battering Thursday that pushed the Nikkei more than two percent down to finish at its lowest close in nearly 15 months.The yen weakened as market sentiment improved, after touching a one-year high against the dollar on Wednesday. The greenback was hardly changed at 117.67 yen from 117.66 yen Thursday in New York. On Thursday, European Central Bank chief Mario Draghi boosted markets after saying there “are no limits” to how far the institution will go with its policy tools, suggesting more stimulus. Dealers are now keeping tabs on the Bank of Japan’s first policy meeting of the year, which is slated for Thursday and Friday next week, amid speculation of fresh monetary stimulus.