TOKYO: Japanese stocks jumped, with the Topix index topped to its first weekly surge this year, after European Central Bank President Mario Draghi extended stimulus.
Insurers, shipping lines and steel producers led gains among the 33 Topix industry groups. Teijin Ltd. jumped 5 percent after Nomura Holdings Inc. boosted its price target on the polyester maker. Robotics manufacturer Yaskawa Electric Corp. added 5.7 percent after raising its profit forecast and dividend. Yamato Holdings Co. lost 3.4 percent after saying it plans to discontinue a mail delivery service.
The Topix advanced 1 percent to 1,403.22 at the close in Tokyo, capping a weekly jump of 2.9 percent. Three shares rose for each that fell today. The Nikkei 225 Stock Average (NKY) added 1.1 percent to 17,511.75, increase 3.8 percent this week.
“Finally, ECB President Draghi made a big decision,” said Genzo Kimura, an economist in Tokyo at Sumitomo Mitsui Trust Bank Ltd., which oversees the equivalent of $472 billion. “Aside from the U.S., which will raise rates, various central banks are changing their policies towards immense easing, and that may push other central banks to hold a bias for monetary stimulus. It’s positive for risk assets.”
The ECB pledged to buy government bonds as part of an asset-buying program worth about 1.1 trillion euros ($1.2 trillion). In addition to monthly purchases, the monetary authority also reduced the cost of long-term loans to banks.
