Stocks rise sharply in Japan, as Nikkei hits eight-week high

Japanese stocks rose sharply Tuesday to an eight-week high as a weaker yen spurred buying of tech and automaker shares. The benchmark Nikkei 225 stock average added 194.56 points, or 1.9 percent, to 10,378.03. The broader Topix index added 1.3 percent to 903.06. Exporters, whose overseas profits shrink as the yen strengthens, benefited from the Japanese currency's retreat. Weighing down the yen were comments by Bank of Japan Gov. Masaaki Shirakawa indicating that interest rates would remain close to zero for the time being. "The market was hopeful that Shirakawa may offer additional cues later today pointing toward further monetary easing, which would push the yen even lower," said Fumiyuki Nakanishi, chief equity strategist at SMBC Friend Securities in Tokyo. Sony Corp. finished up 2.7 percent at 2,650 yen, while automaker Nissan Motor Co. shot up 6.1 percent to 769 yen. Shares of Toshiba Corp. and Elpida Memory Inc. surged after the Nikkei financial daily reported that both chipmakers plan to restart capital spending to boost production capacity. Toshiba climbed 4.7 percent to 518 yen, while Elpida closed 4.6 percent higher at 1,387. Other gainers included truckmaker Isuzu Motors Ltd., which jumped 6.8 percent to 172 yen. In an interview with the Nikkei, company president Susumu Hosoi said the automaker has submitted a proposal to develop next-generation diesel engines with General Motors Co. In currencies, the dollar rose to 91.34 yen from 91.12 yen late Monday. The euro stood at $1.4292 from $1.4282. Japanese financial markets will be closed Wednesday for a national holiday and will reopen Thursday.