Nikkei rises more than 2 pct on hopes for BoJ's easing

Fri Jan 18, 2013 12:41am GMT

TOKYO, Jan 18 (Reuters) - Japan's Nikkei share average rose
more than 2 percent on Friday as exporters gained after a fall
in the yen on expectations that the central bank will ease
monetary policy aggressively next week.
    The Nikkei rose 2.2 percent to 10,842.62. If it ends
above Tuesday's 10,879.08, it will be the highest close in 32
months.
    Citing sources familiar with the central bank's thinking, 
Reuters reported on Thursday that the BoJ next week will 
consider removing the 0.1 percent floor on short-term interest 
rates and commit to open-ended asset buying until the 2 percent 
inflation target is reached. 
     The Nikkei has rallied about 25 percent over the past two 
months, when Prime Minister Shinzo Abe started calling for
further easing, causing the yen to weaken.
    On Thursday, the yen fell to a more than 2-1/2-year low of
90.14 yen to the dollar.
    "Foreign investors are becoming increasingly eager to add
more Japanese stocks," said Tetsuro Ii, the chief executive of
Commons Asset Management.
    "Abe has been successful in lifting investor sentiment. A
good result must be delivered, and we still don't know about
that, but the fact that he boosted investors' risk appetites is
very positive." 
    The central bank's policy meeting is scheduled on Jan. 
21-22.
    Topix added 1.9 percent to 907.01.
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