Weaker yen buoys Tokyo; Asia upbeat

An employee of a foreign exchange trading firm looks at monitors in Tokyo yesterday. The yen fell to a 20-month low against the dollar.

AFP/TokyoAsian stocks were higher in quiet post-Christmas trade yesterday, with Tokyo shares lifted by a weaker yen which sank to a 20-month low against the greenback. The Nikkei 225 index at the Tokyo Stock Exchange jumped 1.49%, or 150.24 points, to 10,230.36 as the Japanese currency dipped past 85 against the dollar for the first time since April 2011. A strong yen is negative for Japanese markets as it erodes exporters’ revenue and makes their products less competitive overseas. Seoul closed flat, adding 0.43 points to 1,982.25, while Shanghai gained 0.25%, or 5.52 points, to 2,219.13.12. India’s Sensex benchmark rose 0.8% to 19,417.46.In other markets; Taipei ended flat, slipping 2.38 points to 7,634.19; Manila gained 0.15%, or 8.89 points, to 5,832.83; Singapore closed up 0.39%, or 12.24 points, to 3,180.81; Kuala Lumpur rose 0.13%, or 2.18 points, to 1,671.58; Jakarta gained 0.59%, or 24.88 points, to 4,275.09; while Bangkok added 0.28%, or 3.91 points, to 1,382.23.Markets in Hong Kong, Sydney and Wellington were closed for a public holiday. Regional gains came despite a lack of fresh trading cues as US and European markets were shut for Christmas, with pessimism still lingering about prospects for a “fiscal cliff” deal by the end of the year. But despite those concerns, the dollar improved yesterday against the yen, hitting a 20-month high on expectations that the Bank of Japan would initiate more monetary easing steps.