Nikkei surges 2.43% on report of more flexible Chinese yuan

19:07, June 21, 2010      

Email | Print | Subscribe | Comments | Forum 

Tokyo stocks surged Monday with Japan's key Nikkei gaining 2.43 percent and hitting one-month closing high as China's decision to allow the yuan to move more flexibly fueled optimism that demand from Japan's biggest export market will continue to expand and investor sentiment rose on the implications for the global economy.

The 225-issue Nikkei Stock Average advanced 242.99 points, or 2. 43 percent, from Friday to 10,238.01, marking its highest closing level since May 18.

Meanwhile, the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 17.85 points, or 2.02 percent, to 902.49.

China's central bank maintained that it would keep intact the basic stability of the yuan -- keeping the currency at a reasonable and balanced level to support stability in the economy and that any adjustment would be gradual. Local brokers said the news, which some thought would send the yen higher, had been met well by the market and the positive effects the move could have on the global economy.

"First, the sharply stronger yen that some investors feared would result from this hasn't materialized," said Takashi Ushio, head of the investment strategy division at Marusan Securities.

"But even more than this, the move suggests sustainable economic growth for China, which is boosting shares pretty much across the board," he said.

China-related issues gained on Monday and the market was optimistic that a stronger yuan would boost China's buying power, market players said, and adding that robust performances of other Asian markets, especially Shanghai, added to the upbeat mood.

Some strategists noted, however, that an appreciation of the yuan, although boosting buying power, could hurt Chinese exports if the currency rises too sharply. However the majority of market players took the central bank's plan of a "gradual" adjustment at face value as the central bank had ruled-out a one-time reevaluation, and the long-term implications of the possible rise contributed to the market's confidence as euro zone fears begin to subside.
【1】 【2】

(Editor:赵晨雁)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Passengers wait for help after a coach skidded of an icy road in Xinghai county, Northwest China's Ningxia Hui autonomous region, Sept 28, 2011. The accident occurred at an altitude of 4,400 meters Wednesday morning and has trapped 41 passengers in the snow covered area. The coach was travelling from Xining city to Yushu county in Qinghai. (Photo/Xinhua)
  • People wait for physical examination and medical treatment at a hospital in east Pakistan's Lahore on Sept. 28, 2011.  (Xinhua Photo/Sajjad)
  • A doctor takes blood sample of a girl for the dengue virus test at a hospital in east Pakistan's Lahore on Sept. 28, 2011.  (Xinhua Photo/Sajjad)
  • Local pupils tie the rice at Jindai Botanical Garden in Chofu, Japan, Sept. 28, 2011. A group of pupils reap the rice they planted this May in Jindai Botanical Garden on Wednesday. (Xinhua/Kenichiro Seki)
  • A news conference on the nation's first space-docking procedure is held at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. The Tiangong-1, or "Heavenly Palace 1," is scheduled to be sent into space late Thursday to perform the nation's first space-docking procedure. (Xinhua/Wang Jianmin)
  • Actors perform during a dancing opera about Confucius (551-497BC), a Chinese thinker, educationist and philosopher, in Qufu, Confucius' hometown in east China's Shandong Province, Sept. 27, 2011. (Xinhua/Xu Suhui)
Hot Forum Discussion