Japanese stocks rose, driving up the Nikkei 225 Stock Average by the most in seven weeks, as the dollar strengthened after the U.S. Federal Reserve said it will expand record measures to support the world’s largest economy.
The 225-issue Nikkei Stock Average advanced 204.94 points, or 2.24 percent, from Tuesday to 9,364.92. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 15.03 points, or 1.87 percent, to 818.15, coming off a 19-month low registered on Tuesday.
The Nikkei 225 has slumped 11 percent this year, the most among the world’s 40 largest equity markets. Today’s advance boosted the average price of stocks in the gauge to 16.6 times estimated earnings, the highest level in a month.
The market saw strong gains as investor sentiment was heartened by modest rises overnight on Wall Street, after the Fed decided to embark on a second round of quantitative easing by purchasing government bonds worth $600 billion at the end of its two-day policy meeting.Futures on the Standard & Poor’s 500 Index slid 0.1 percent today. The index gained 0.4 percent to a six-month high of 1,197.96 yesterday in New York as banks rose after the Fed said it will buy an additional $600 billion of Treasuries through June.
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Disclosure: "No Positions"