Export boost lifts stocks in Japan

Japan’s benchmark stock index jumped as a softening yen helped boost the country’s powerhouse export sector.

The Nikkei 225 index in Tokyo rallied 1.2% to 10,055.35, with export shares leading the way.

The dollar traded at a 20-month high of 84.95 yen overnight in New York after incoming prime minister Shinzo Abe turned up the pressure on the Bank of Japan to adopt a 2% inflation target. Yesterday in Asia, the dollar stood at 84.80 yen.

During a televised programme, Mr Abe said he will consider revising the Bank of Japan Act if the central bank refuses to act at next month’s policy meeting, Kyodo News Agency said.

That is designed to fight deflation, or continually dropping prices, which deadens economic activity. The Japanese economy has been stuck in deflation for two decades.

Mazda Motor Corp gained 2%, while Nikon Corp advanced 2.9%. Nomura Holdings jumped 5.3%.