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Thursday, 13th May 2010
In Business In Japan,

Japanese stocks up on Europe bolstering

Shares on the Japanese stock exchange have risen in the wake of cash injections into troubled European markets.

Stocks went up by the most seen in the last two weeks on the back of improved profit forecasts from a number of companies. The forecasts followed promises by Spain and the new government of the UK to cut their budget deficits, which eased tension in the European markets.

As well as suffering the impact of the downturn, global stocks and shares have recently been hit by a further financial crisis in Greece, which is struggling with debts almost as large as its national GDP.

The benchmark Nikkei index went up by 226.52 points, around 2.18 per cent, while the Topix index also rose by 1.62 per cent, or 15.07 points.

Naoki Fujiwara, a fund manager in Tokyo at Shinkin Asset Management in Tokyo, said to Business Week: "Japanese stocks are not expensive considering earnings results. Anxiety over Europe's sovereign debt crisis has eased."

Written by Mark Smith.