Tokyo stocks close up 1.95% at six-month high

Tokyo stocks close up 1.95% at six-month high
PHOTO: Tokyo stocks close up 1.95% at six-month high

TOKYO - Tokyo stocks surged 1.95 percent Friday to close at their highest level in six months, boosted by a weaker yen and hopes the US Federal Reserve will maintain its easy-money policy.

The benchmark Nikkei 225 index added 289.51 points to 15,165.92, the best finish since hitting a five-year high in late May.

The Topix index of all first-section issues was up 1.68 percent, or 20.49 points, at 1,239.04.

Investor sentiment improved after US Federal Reserve chair nominee Janet Yellen suggested the central bank would not start reeling in its easy-money policy in the immediate future as economic growth remained tepid and unemployment still too high.

"The market scenery has changed," said Toshihiko Matsuno, strategist at SMBC Friend Securities.

"Ms Yellen suggested the easy-money policy would continue to prop up the economy, which is theoretically a negative factor for the dollar," he added.

But her comments boosted risk sentiment and pushed up stock prices, which prompted stock investors to jump on the bandwagon, he said.

"Many market players moved for buy-backs," Matsuno said.

The Nikkei gained 7.7 percent or more than 1,000 points over the week.

The headline index hit a high above 15,600 in late May.

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