Nikkei up after Japan gets nod from G7 on stimulus

AP News
Posted: May 12, 2013 11:37 PM
Nikkei up after Japan gets nod from G7 on stimulus

BANGKOK (AP) — Japan's stock market jumped Monday after global finance leaders gave a seal of approval to the country's stimulus program and refrained from criticizing its weakening effect on the yen. Stocks were mixed elsewhere in Asia.

The benchmark Nikkei 225 index in Tokyo shot up 1.6 percent to 14,838.08. The index has soared nearly 43 percent since the beginning of the year.

Finance leaders from the world's seven leading industrialized economies said at a meeting over the weekend in Britain that Japan's stimulus policies are aimed at boosting the domestic economy, which has been mired in stagnation since the 1990s, and not manipulating the yen.

Prime Minister Shinzo Abe, elected late last year on promises to revive the world's third-largest economy, has implemented a policy mix of increased public spending and aggressive monetary easing.

One result has been a dramatic fall in the value of the yen, which helps the country's export industries by making products more affordable in overseas markets while increasing the value of repatriated profits. On Thursday, the dollar rose above 100 yen for the first time in more than four years.

Elsewhere, South Korea's Kospi was nearly unchanged at 1,944.41. Hong Kong's Hang Seng fell 0.8 percent to 23,127.48. Australia's S&P/ASX 200 dropped 0.2 percent after banking shares slid.

Commodities such as gold and oil fell Friday as the U.S. dollar continues to appreciate against the yen and other currencies. When the dollar rises against other currencies, it tends to weaken demand for commodities, hurting resource-related shares.

Hong Kong-listed Zijin Mining Group, China's largest gold miner, fell 2.6 percent. Japanese energy explorer Inpex Corp. tumbled 5.6 percent.

On Wall Street on Friday, the Dow Jones industrial average rose 0.2 percent to close at 15,118.49. The Standard & Poor's 500 index climbed 0.4 percent to 1,633.70. The Nasdaq composite index rose 0.8 percent to 3,436.58.

Benchmark oil for June delivery was down 78 cents to $95.26 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 35 cents to $96.04 per barrel in Nymex trading on Friday in New York.

In currencies, the euro fell to $1.2974 from $1.2983 late Friday in New York. The dollar rose to 101.87 yen from 101.53 yen.


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