Japan stocks rise on yen's retreat, overseas gains

Japanese shares rose strongly Friday morning as investor sentiment was buoyed by the yen's retreat against major currencies and overnight gains on Wall Street and European markets, dpa reported. The benchmark Nikkei 225 Stock Average gained 118.61 points, or 1.4 per cent, to trade at 8,561.71 at the end of the morning session at 11:30 am (0230 GMT). The broader-based Topix index was up 10.7 points, or 1.5 per cent, at 725.61. The Dow Jones Industrial Average jumped 1.67 per cent overnight after European Central Bank chief Mario Draghi vowed to do "whatever it takes" to prevent the crisis-hit eurozone from breaking up. In Tokyo, Europe-exposed stocks got a boost. Shares in Seiko Epson Corp surged 5.4 per cent, Konica Minolta Holdings Inc jumped 4.39 per cent, Ricoh Co rose 4.21 per cent, Sony Corp added 3.29 per cent and Canon Inc was up 1.46 per cent. Automakers also climbed. Honda Motor Co gained 3.67 per cent, Nissan Motor Co put on 2.97 per cent and Toyota Motor Corp climbed 2.44 per cent. The government said Friday Japan's key consumer price index fell 0.2 per cent in June from a year earlier for the second consecutive month of decrease. The country has been in the throes of deflation for more than a decade. On currency markets at 11:30 am in Tokyo, the euro traded at 1.2279-2282 dollars, up from Thursday's 5 pm quote of 1.2147-2148 dollars, and at 96.07-12 yen, up from 94.93-97 yen. The dollar was quoted at 78.23-28 yen, up from 78.15-16 yen late Thursday. A weaker yen makes Japanese goods less expensive overseas and improves repatriated earnings.