TOKYO: Tokyo stocks have ended up 1.64 per cent, picking up a strong lead from Wall Street after minutes from the Federal Reserve’s latest policy meeting suggested it could keep interest rates at record lows into 2016.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange closed 297.50 points higher at 18,438.67, while the broader Topix index of all first-section shares jumped 2.28 per cent, or 33.73 points, to 1,515.13.
The early lift was also supported by bargain-hunting, which emerged after a decline the previous day when the Tokyo bourse ended six straight days of gains.
In the US, the Dow Jones Industrial Average advanced 0.82 per cent while the broad-based S&P 500 rose 0.88 per cent.
Minutes from the Fed’s September 16-17 meeting emphasised policy makers’ concerns about the slowing global economy, led by China, and the drag of the stronger dollar on the US.
The Fed decided at that meeting against raising rates.
Juichi Wako, a senior strategist at Nomura Holdings Inc, said the Japanese markets were unlikely to make any extreme movements.
“We’re in a Goldilocks state where the economy is looking positive, but the rate hike will probably be pushed back,” he told Bloomberg News.
“We’ll continue to see a correction of excessive pessimism,” he added.
On currency markets, the US dollar was at Y120.14 in afternoon trade against Y119.92 late on Thursday in New York.
The euro traded at $US1.1278 and Y135.50 against $US1.1275 and Y135.21.
In Tokyo trade, Toyota gained 2.05 per cent to Y7,500, while Sony advanced 1.83 per cent to Y3,211 yen.
