Tokyo stocks surge

Tokyo stocks surged 2.72 percent Wednesday as investors focus on the US and Japanese central banks' first meetings of 2016, while rallies in car titan Toyota and Suzuki also provided strong support. Dealers are keeping a close eye on the outcome of the policy meetings at the US Federal Reserve and the Bank of Japan (BoJ) this week for fresh trading cues with the global economy struggling and markets in turmoil.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange gained 455.02 points to close at 17,163.92, bouncing back from losses of more than two percent Tuesday. The Topix index of all first-section shares soared 2.98 percent, or 40.47 points, to 1,400.70.
The US central bank is not expected to announce any change in monetary policy after the meeting ends later Wednesday, following its historic interest rate raise in December. But dealers will pore over its post-meeting statement hoping for signs that it will back off its plans for four further rate hikes this year. "We're in a wait-and-see mode until the Fed and the BoJ," Chihiro Ohta, general manager of investment information at SMBC Nikko Securities, told Bloomberg News.
"If (the) Fed indicates four rate hikes for this year, it will be disappointing." The Bank of Japan wraps up its first policy meeting of the year Friday, with markets waiting to see if it unveils more stimulus measures to counter weakness in the world's number three economy. A report suggesting it was considering such a move help fuel a global rally at the end of last week.
Suzuki surged nearly 16 percent at one stage on reports that it is in talks with Toyota over a partnership to make compact cars for emerging markets, including India. The small-car specialist ended up 11.35 percent at 3,590 yen. Toyota jumped 3.80 percent to 6,881 yen. Before markets closed, Toyota said it sold 10.15 million vehicles globally in 2015, driving past scandal-hit Volkswagen and US rival General Motors to keep the title of world's biggest automaker for the fourth straight year. Rival Nissan was up 3.03 percent to end at 1,103 yen after saying its global sales hit a calendar-year record 5.42 million units.
Sony climbed 3.37 percent to 2,512 yen while mobile carrier SoftBank soared 6.97 percent to 5,187 yen as its struggling US unit Sprint reported better-than-expected financial results. Banking giant Mitsubishi UFJ Financial Group advanced 4.96 percent to 634 yen, Uniqlo operator Fast Retailing, a market heavyweight, rose 1.67 percent to 37,610 yen and energy explorer Inpex advanced 4.03 percent to 1,017.5 yen.