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Japan shares rise on hopes of steps to help banks
AP - Monday, March 16
TOKYO - Japanese shares rose Monday on growing expectations for new efforts by the government to buoy Japan's economy, with large exporters getting an extra boost from the dollar's strength against the yen.
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The benchmark Nikkei 225 stock average ended up 1.8 percent, or 134.87 points, 7,704.15. It was a second straight session of strong gains, after a 5 percent surge on Friday.
The recent run has also been fueled by a rally in the U.S., where last week was the strongest for the two major indexes since November. For the week, The Dow Jones industrials were up 9 percent, and the broader S&P gained 10.7 percent.
In Japan, banks got a boost Monday on a report in Japan's main business newspaper, The Nikkei. The paper said that the country's central bank is considering a plan to buy subordinated loans and subordinated bonds from banks, in a bid to help bolster their capital and offset losses caused by writedowns on stock investments, as part of a broader set of economic measures to be announced in a few weeks. The Bank of Japan is to hold discussions on the matter at its two-day policy meeting beginning Tuesday, the report said.
Major banks jumped after recent losses. Mitsui UFJ Financial Group, Inc. gained 5.3 percent to 441 yen, while Sumitomo Mitsui Financial Group, Inc. rose 6 percent to 3,020 yen. Shinsei Bank shot up 17.3 percent to 95 yen.
Some major exporters also benefited from the dollar's steady strength against the yen. The yen was trading at 98.28 yen to the dollar in Tokyo late afternoon Monday, compared with 98.04 in New York late Friday.
Canon Inc. shot up 4.9 percent to 2,595 yen, while Pioneer gained 12.8 percent to close at 106 yen.
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