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Japan stocks rise on weaker yen, US stimulus plan
AP - Wednesday, January 7
TOKYO - Japanese stocks rose Tuesday as investors turned upbeat on President-elect Barack Obama's proposed economic stimulus package, and exporters got a boost from a weaker yen.
The benchmark Nikkei 225 stock average added 37.72 points, or 0.4 percent, to close at 9,080.84, ending higher for a sixth straight trading session. The broader Topix index edged up just 0.03 percent to 876.20.
"The market held steady thanks to hopes for Obama's massive economic plan. If implemented, investors were hopeful that it could spur an economic recovery around later this year," said Kazuki Miyazawa, market analyst at Daiwa Securities SMBC Co. Ltd.
Obama's stimulus package could cost $800 billion or more. It includes tax cuts of up to $300 billion in a bid to shore up the world's largest economy. Meeting with congressional leaders Monday at the Capitol, Obama said he hoped to see his stimulus package ready for signing into law by early February.
Apart from economic hopes under the incoming Obama administration, sentiment was positive as investors took heart from a rise in the dollar, which spurred buying in beaten-down exporters like Sony Corp. and Toyota Motor Corp.
Exporters were heavily sold recently on worries that a surge in the yen, which hit a 13-year high against the dollar in December last year, could erode their profits.
The dollar was quoted at 93.27 yen in Tokyo late afternoon trade Tuesday against 93.24 yen in New York late Monday.
Sony jumped 7.6 percent to 2,120 yen. Electronics giant Panasonic Corp. gained 4.3 percent to 1,190 yen.
Toyota added 1.3 percent to 3,050 yen despite the announcement that it will suspend production at all 12 of its domestic plants for 11 days over February and March, a stoppage of unprecedented scale for Japan's No.1 automaker.
Honda Motor Co. increased 1.7 percent to 1,991 yen, while Nissan Motor Co. was up 2.4 percent at 341 yen.
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