Markets

Tokyo shares climb 1.13pc on firmer euro

TOKYO : Tokyo share prices climbed 1.13 percent Tuesday thanks to a firmer euro against the yen amid optimism that Europ

Published June 21, 2011 Updated June 21, 2011 08:33am

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By Syed Murtaza Gheblehzadeh

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The benchmark Nikkei-225 index rose 105.34 points to close at 9,459.66. The Topix index of all first-section issues gained 1.10 percent or 8.90 points to 815.73.

"Investors are taking a respite from the recent Greek-debt tension build-up and gearing up for (US) Fed Chairman Bernanke's comments on Wednesday," Kazuhiro Takahashi, general manager of investment strategy at Daiwa Securities, told Dow Jones Newswires.

On Monday the Dow Jones Industrial Average closed up 0.63 percent, with sentiment buoyed by the resolve shown by European officials to prevent a Greek debt default.

Greece on Monday was given a two-week deadline to drive through drastic new cuts before it can receive a 12-billion-euro payment to ensure it does not default on its sovereign debt.

The Tokyo market was also supported by the modest improvement in risk-appetite and the euro's strength against the yen, dealers said.

The single European currency edged up to 114.81 yen from 114.74.

Investors are eagerly awaiting the outcome of this week's meeting of the Federal Open Market Committee, the body within the US Federal Reserve that sets interest rates.

Bernanke is to speak after the US central bank's policy-setting panel ends its two-day meeting on Wednesday.

The FOMC is expected to announce its $600 billion Treasury bond purchases programme will expire as scheduled by the end of June, and not announce additional stimulus amid weak economic growth.

On the stronger euro rate against the yen, exporters rose, with Nissan up 3.14 percent at 820 yen and Mazda Motor up 2.51 percent at 204.

Toyota shares closed 0.94 percent higher at 3,205. Honda gained 1.07 percent to 2,928.

Panasonic fell 0.64 percent to 923 yen on concerns the company may not achieve its fiscal year profit target.

The company said on Monday that it expects net profit to tumble 59.5 percent in the fiscal year through March 2012 due to the impact of the March 11 earthquake and tsunami on production.

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