TOKYO: Tokyo stocks soared 2.32 per cent, on strong Wall Street rally and lower yen after the US Federal Reserve pointed out it would climb interest rates by mid-2015.
The Nikkei 225 index at the Tokyo Stock Exchange ended up 390.32 points at 17,210.05 on Thursday, while the Topix index of all first-section shares climbed 1.80 per cent, or 24.31 points, to 1,376.32.
“The Fed pretty much said what markets most wanted to hear – no rate rise for the next three months,” Sumitomo Mitsui Banking strategist Daisuke Uno said.
On Wednesday, the US dollar rose after the Fed signalled no shift in its expectation to raise interest rates in 2015.
The Federal Open Market Committee “judges that it can be patient in beginning to normalise the stance of monetary policy”, the Fed’s policy arm said in a statement after a two-day meeting.
The central bank said the policy was consistent with its prior statement that it would only begin normalisation “a considerable time” after the end of massive asset purchases, known as quantitative easing, which occurred at a meeting in October.
On Wall Street, the Dow surged 1.69 per cent, the S&P 500 rose 2.04 per cent and the Nasdaq advanced 2.12 per cent.
The US dollar jumped in New York to 118.63 yen from 117.07 yen in Tokyo earlier on Wednesday. On Thursday in Asia it hit 118.99 yen before settling back to 118.64 yen.
A weak yen is a positive for Japanese exporters as it makes them more competitive abroad and inflates profits when they are repatriated.
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