Tokyo stocks up 1.28% by noon
TOKYO — Tokyo stocks rose 1.28 percent Friday morning, supported by a European interest rate cut and Greece’s decision to back away from its plan for a referendum on last week’s eurozone rescue package.
The Nikkei index at the Tokyo Stock Exchange gained 110.34 points to 8,750.76 by the lunch break after the European Central Bank’s surprise rate cut sent European and US stock markets, along with the euro, soaring on Thursday.
The broader Topix index of all first-section issues rose 9.91 points or 1.34 percent to 748.49.
“The risk-averse attitude is easing somewhat for now” after the rate cut and relief over Greece, said Kazuhiro Takahashi, general manager of investment strategy at Daiwa Securities.
Still, ahead of closely watched US jobs data due later in the day, the Nikkei may struggle to rise above 8,800, he told Dow Jones Newswires.
Greek Prime Minister George Papandreou said on Thursday he could drop a plan to hold a referendum.
Investors were relieved after the controversial plan roiled global markets over the last few days, said Kenichi Hirano, operating officer at Tachibana Securities.
“The index was down on Greece worries and up on Greece hopes in recent days… Jittery trading will likely continue,” he said.
Sony tumbled 7.43 percent to 1,407 yen on its dismal earnings forecast released after the market closed on Wednesday. Tokyo was shut on Thursday for a national holiday.
The Japanese electronics giant said Wednesday that it expected to slide to its fourth straight annual loss as it reels from the impact of a strong yen, weak sales and severe flooding in Thailand.
Tokyo Electric Power Co., the operator of the crippled Fukushima nuclear plant, was down — after the government agreed to give it $11.5 billion in aid to help it pay compensation to those affected by the disaster.
Embattled camera maker Olympus lost 7.25 percent to 1,113 yen after it delayed Tuesday’s release of earnings results as it awaits a report from a panel it set up to probe allegations over buyout deals in recent years.
Olympus said it would announce the results “as soon as possible”.
The firm is under intense pressure to account for pricey deals and advisory fees after ousted chief executive Michael Woodford raised doubts over them, citing serious concerns over corporate governance.
