Tuesday June 30, 12:39 am Eastern Time
Tokyo Nikkei climbs over two percent in afternoon
TOKYO, June 30 (Reuters) - The Tokyo stock market's key Nikkei average climbed more than two percent in early afternoon trade on Tuesday, as the yen's recovery stimulated buying-back of shares, brokers said.
The stock index was also supported by hopes that end-quarter purchasing will emerge later today and speculation that a permanent income tax cut may be in the offing, they said.
At 0410 GMT, the Nikkei 225 average was up 330.47 points, or 2.15 percent, at 15,696.20. Nikkei September futures added 300 points to 15,690.
''There are hopes that window-dressing buying will emerge just before the market closes, and the hopes are inviting dealers' buying,'' one broker said.
Brokers said end-quarter buying is likely to come from foreign houses.
Speculation that Japan's ruling party was seriously considering a permanent tax cut was fuelled by a remarks by a leading Liberal Democratic Party politician reported on a local newspaper's Internet site late on Monday, brokers said.
The Internet edition of the Yomiuri Shimbun quoted LDP policy chief Taku Yamasaki as saying the ruling party was paying heed to calls for a permanent tax cut.
Many analysts view permanent tax cuts as one way to get Japan's sluggish economy out of recession. |
