Summary "It's leading to higher share prices"
HONG KONG (AFP) - Tokyo stocks soared again Tuesday to lead another Asia-wide markets rally fuelled by hopes of fresh central bank stimulus and following last week s blockbuster US jobs report.
The gains extended a global advance that saw the S&P 500 on Wall Street close at a record high for the first time in 14 months.
They also suggest investor fears over Britain s shock European Union exit vote last month have been allayed by promises of central bank help.
The Nikkei index was up 2.7 percent by lunch, adding to the four percent surge clocked up Monday as the yen retreated against the dollar following a huge win for Japanese Prime Minister Shinzo Abe s coalition in weekend elections.
Abe said Monday his government would draw up new measures worth 20 trillion yen ($196 billion), Japanese media reported, in his latest push to kickstart the torpid economy.
"US shares have started the week on a good note, and the risk-on (sentiment) is continuing," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
"It s leading to higher share prices."
Talk of fresh Japanese easing measures helped push the dollar up to 103.04 yen from 102.82 yen in New York. The fall in the yen provided much-needed support for Japan s exporters after the currency surged in response to the Brexit vote as traders sought out low-risk investments.
Other regional markets also climbed for a second straight session, with Hong Kong up 0.9 percent, Shanghai 0.4 percent higher and Sydney also 0.9 percent stronger. There were also gains of about 0.3 percent for Seoul, Wellington and Singapore.
The upbeat atmosphere also lent support to the under-pressure pound, which edged up to $1.3078 from $1.2997 as dealers breathed a sigh of relief that Britain s ruling Conservatives had a new leader to take over from David Cameron as prime minister.
Theresa May will step in on Wednesday after her only opponent for the leadership quit in a shock move Monday, and provide a little certainty for the country as it looks to untangle itself from the EU over the coming years.
