Nikkei soars to near 6-month high, extends gains on Aso comments

Business & Markets 2013
Written by Reuters
Thursday, 14 November 2013 13:12
A + A - Reset
TOKYO, Nov 14 (Reuters) - The Nikkei stock average surged almost 3 percent
to a near six-month high on Thursday afternoon, extending gains after
comments by Finance Minister Taro Aso on currency intervention sparked fresh
buying.
Aso, speaking in parliament, said it was important to have foreign exchange
intervention as a policy option, saying Japan must always be ready to send a
signal to markets to curb excessive, one-sided currency moves.
His comments added to pressure against the yen, which neared a two-month
low versus the dollar, even though few market players think the finance ministry
intends to conduct intervention any time soon.
The benchmark Nikkei rose as much as 2.7 percent to 14,966.43 in early
afternoon trade, its highest level since May 24.
The market also got a boost from dovish comments by Federal Reserve Vice
Chair Janet Yellen and data showing the Japanese economy notched up its
fourth straight quarter of growth.
"I think buying is mainly by small- or medium-sized foreign hedge funds who are
chasing Nikkei 225 futures," said Kenichi Hirano, a strategist at Tachibana
Securities.
"Some of those funds covered their short positions ahead of their year-end
book closing later this month."
Nikkei heavyweights Fast Retailing Co Ltd jumped 5.8 percent, KDDI Corp
climbed 5.1 percent and Fanuc Corp gained 3.9 percent.
The broader Topix added 1.4 percent to 1,220.77. - Reuters