Nikkei breaks 10,000 mark; Asia upbeat

A television reporter speaks in front of an electronic share price board displayed in the window of a securities firm in Tokyo yesterday. Tokyo’s Nikkei 225 index closed above the 10,000 level for the first time in more than eight months, on the back of a weaker yen following a conservative win in Japan’s national elections.

AFP/TokyoAsian markets were boosted yesterday as US politicians look to be closing in on a deal to avert the fiscal cliff, while the euro added to gains in New York after Greece’s debt rating was upgraded. Tokyo shares surged 2.39%, a third straight rally, to break 10,000 for the first time in eight months ahead of an expected Bank of Japan announcement on monetary policy. The Nikkei in Japan ended up 237.39 points, to 10,160.40 on the Tokyo Stock Exchange, while Sydney climbed 0.49%, or 22.6 points, to a 17-month high of 4,617.8. Hong Kong climbed 0.57%, or 128.64 points, to 22,623.37, while Shanghai closed flat, dipping 0.22 points to 2,162.24. Seoul was closed for presidential elections. In other markets; Taipei rose 33.73 points, or 0.44% at 7,677.47; Manila soared 2.05%, or 115.80 points, to 5,752.39; Wellington added 1.10%, or 43.75 points, to 4,023.00; Singapore closed up 0.06%, or 1.78 points to 3,158.57; Bangkok gained 1.13% or 15.46 points to 1,378.40; Jakarta ended down 25.57 points, or 0.59%, at 4,275.85; while Kuala Lumpur gained 6.2 points, or 0.37%, to close at 1,665.64.The main focus continues to be on the US, where lawmakers are holding talks to avert the huge tax hikes and deep spending cuts slated to come into effect in two weeks. Most economists expect the package to tip the US economy into recession if a new deal—with less swingeing measures—is not agreed in time. However, there is growing confidence that progress is being made in the negotiations, with top Republican lawmaker John Boehner saying he is willing to see taxes rise for people on more than $1mn—rather than his previous position of no rises at all. Adding to the upbeat sentiment was news out of Europe that Standard & Poor’s raised Greece’s sovereign debt rating by six notches, citing support for Athens from its eurozone partners. The Japanese currency remains under pressure as traders await the end of a two-day BoJ meeting today, with most expecting fresh monetary easing to kickstart the economy. Incoming prime minister Shinzo Abe Tuesday asked central bank chief Masaaki Shirakawa to adopt a 2% inflation target, just days after his landslide election win on a promise of pressing for more aggressive monetary easing. The weak yen again fuelled a rally on the Nikkei, which hit its highest level since early April.