TOKYO: Tokyo shares jumped in early trade Tuesday, extending the previous day’s sharp rally as exporters including Toyota and factory robot maker Fanuc got a boost from a weaker yen.
The benchmark Nikkei 225 index soared as much as 3.30 percent, or 518.92 points, to 16,227.74 in early trade, after a four percent rise on Monday.
The broader Topix index of all first-section shares jumped as high as 3.20 percent, or 40.14 points, to 1,295.93.
Tokyo picked up a solid lead from global equity markets on Monday, with the S&P 500 roaring to an all-time high on Wall Street.
Japanese Prime Minister Shinzo Abe’s ruling coalition victory in weekend parliamentary elections has boosted hopes for a big stimulus package to kickstart growth.
“US shares have started the week on a good note, and the risk-on (sentiment) is continuing,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
“It’s leading to higher share prices.”
Abe said Monday he would order his economy minister to draft fresh stimulus measures, the size of which could reach 20 trillion yen ($196 billion), Japanese media said.
