Tokyo stocks surge

Tokyo shares booked an exporter-led rally Tuesday, as the yen slipped after the Japanese government again raised the possibility of intervention in forex markets to stem the unit's steep rise. Finance Minister Taro Aso told a press conference on Tuesday morning that the country's leaders were ready to take action as needed to counter sharp moves in currency markets, according to local media.
The yen weakened to 108.33 per dollar on Tuesday afternoon in Tokyo from 107.94 in New York. The Japanese unit has jumped about five percent this month - threatening Tokyo's attempts to kick-start growth at home - as concerns about the global economy lead traders into safe-haven investments. A strong yen is bad for Japan's exporters, because it makes their goods more expensive overseas and shrinks the value of repatriated profits.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange got a boost Tuesday as the yen fell back from its recent highs. It rose 1.13 percent, or 177.66 points, to close at 15,928.79. The broader Topix index of all first-section shares jumped 1.53 percent, or 19.56 points, to 1,299.35. Analysts said the yen-driven sell-off on Japanese stock markets, which are among the worst performers globally this year, may have gone too far.
"It seems investors have become weary of that selling and are starting to see that the timing for buying back those shares has come," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News. Among key exporters, automakers were sharply higher, with Toyota soaring 3.92 percent to 5,485 yen, while Honda advanced 3.79 percent to 2,929.5 yen and Nissan added 3.28 percent to 983.2 yen.
Factory robotics giant Fanuc surged 4.44 percent to 17,895 yen, Canon was up 0.83 percent to 3,166 yen and Sony gained 2.26 percent to 3,032 yen. Energy firms were boosted by another gain in crude prices ahead of Sunday's meeting of major producers that could result in an agreement to cap output. Energy explorer Inpex jumped 2.24 percent to 821.4 yen, while JX Holdings rose 1.31 percent to 442.4 yen.