A rise in Japanese stocks followed an announcement by the Bank of Japan to take measures in boosting the economy and combating deflation…
Mizuho Financial Group Inc., Japan's third-biggest publicly traded bank surged 8.6 percent. Banks recovered from a brief plunge after Japan's financial regulator said it was not considering a capital surcharge for major lenders. Mitsubishi Corp., Japan's largest commodities trader, rose 2.3 percent. Mitsubishi Estate Co. gained 4.2 percent after the central bank said yesterday it will buy more assets including real-estate trusts. Kawasaki Kisen Kaisha Ltd., Japan's No. 3 shipping line, advanced 4 percent after cargo tariffs increased.
"Speculation about monetary easing increased globally, directing money into the markets," said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co.
The Nikkei 225 Stock Average rose 1.8 percent to 9,691.43 at the close in Tokyo. The broader Topix index gained 1.4 percent to 844.50, with more than twice as many shares rising as falling.
The Nikkei 225 has fallen 8.1 percent this year as Europe's debt crisis, Chinese steps to curb property-price inflation and concern about the pace of the U.S. economic rebound hurt confidence in a global recovery. That's the second-biggest drop among the world's 10 largest equity markets. Stocks in the gauge trade at 16.7 times estimated earnings on average, near the lowest level since October 2008.