Money World economy
Japanese stocks soared 3% this morning after strong gains on Wall Street and as investors were hopeful of possible central bank measures to halt the yen's rise and support the slowing economy.
The benchmark Nikkei 225 Stock Average gained 274.33 points, or 3.05 per cent, to trade 9,265.39 at while the broader Topix index was up 19.94 points, or 2.43 per cent, at 839.56.
Japanese Prime Minister Naoto Kan is to hold talks with Bank of Japan Governor Masaaki Shirakawa Monday afternoon after the bank's meeting. The two are expected to discuss the yen's sharp rise and falling share prices.
The central bank started an emergency boarding meeting at 9:00 to discuss additional monetary easing measures amid mounting concerns about the slowing economy and the yen's gains, news reports said. The Japanese currency hit a 15-year high against the dollar last week.
A stronger yen makes Japanese exports less competitive and erodes overseas earnings when the revenues are repatriated.
On Friday, US stocks surged as the government reported a slowdown in second-quarter growth that was nevertheless better than analysts had expected.
On currency markets at 9 am, the dollar traded at 85.59-61 yen, up from Friday's 5 pm quote of 84.65-66 yen.
