TOKYO: Tokyo stocks have risen 0.38 per cent, supported by a weaker yen after Japan’s central bank cut its inflation and growth forecasts, boosting the odds of more monetary easing this year.
The Nikkei 225 index at the Tokyo Stock Exchange on Wednesday added 78.00 points to close at 20,463.33, marking a three-day winning streak, while the Topix index of all first-section shares climbed 0.47 per cent, or 7.70 points, to 1,646.41.
Tokyo opened higher on a positive lead from Wall Street with upbeat Chinese growth data and easing fears over Greece lifting investor spirits.
Greece on Wednesday geared up for a parliamentary vote on tough reforms demanded by eurozone creditors in exchange for a huge new bailout.
“It looks as if the Greek problem will come to a resolution,” said Masaru Hamasaki, head of the investment information department at Amundi Japan.
“We’re seeing a rebound as the external environment calms down.”
Official data on Wednesday showed China’s GDP expanded 7.0 per cent year-on-year in the second quarter, beating expectations as months of central bank policy stimulus helped put a floor under the world’s second-largest economy.
Meanwhile, the Bank of Japan cut its annual economic growth and inflation forecasts, fuelling expectations of more stimulus this year and sending the yen lower, which is a plus for Japanese equities.
Investors are now awaiting US Federal Reserve chief Janet Yellen’s twice-yearly testimon.
