Tokyo stocks closed up 2.07 percent on Tuesday as a weakening yen lifted exporters, and after European markets rose on growing expectations that the European Central Bank will launch fresh stimulus. The Nikkei 225 index at the Tokyo Stock Exchange soared 352.01 points to 17,366.30, while the Topix index of all first-section shares climbed 1.84 percent, or 25.22 points, to 1,397.63.
"The yen is weakening on expectations for further stimulus measures from the ECB, which is supporting stocks," said Tomomi Yamashita, a fund manager at Shinkin Asset Management Co in Tokyo. ECB policymakers hold their much-anticipated meeting on Thursday and analysts broadly expect it to announce a bond-buying scheme aimed at kick-starting lending in the struggling eurozone.
Yamashita also said "expectations are high for good earnings results." "It may not be enough to push the market higher, but it'll be a good support," he told Bloomberg News. The yen slipped to 118.30 to the dollar and 136.98 to the euro on Tuesday from 117.53 and 136.69 in London on Monday. The safe-haven yen lost ground as confidence was boosted by better-than-expected Chinese growth data.
The lower yen helped exporters gain ground. Toyota was up 2.59 percent to 7,659.0 yen and Canon was up 1.65 percent at 3,850.0 yen. Trading company Itochu closed down 2.54 percent to 1,207.0 yen after announcing the trading house was teaming up with Thai agricultural giant Charoen Pokphand Group to invest $10.4 billion in Chinese conglomerate Citic Group for a combined 20 percent stake.