Japanese shares rise as yen continues to weaken

Last Updated at 11 Feb 2013, 20:50 GMT

¥1 buys	change	%
0.0106	0.00	+0.15

Japan's Nikkei 225 index has risen 2.3% as the yen continued to weaken, raising hopes of a profit boost for exporters.

The yen fell after a US official voiced support for Japan's recent policy moves to try and spur economic growth.
The moves have seen the yen slide more than 15% since November, leading to concerns that some countries may oppose Japan's aggressive stance.
The fear was that such criticism might prompt Japan to tone down its policy and the currency could rise again.
Analysts said that the support from US Treasury Under Secretary Lael Brainard, especially ahead of the meeting of the G20 group of nations later this week, had helped allay those fears.
The finance ministers and central bank officials from the G20 nations are scheduled to meet in Moscow and currency policies are expected to be a key topic of discussion.
"Investors were worried that finance ministers would criticise the recent weakness in the yen," said Hiroichi Nishi of SMBC Nikko Securities.
"While currency moves have been sensitive to officials' comments in general, people thought any comment from the G20 would trigger yen buying.
"But such worries are receding as she (Ms Brainard) said she supports Japan's efforts to end deflation," he added.
The Japanese currency fell nearly 2% to 94.25 yen against the US dollar and to 126.4 yen versus the euro in early Asian trade on Tuesday.
A weak yen bodes well for Japan's exporters as it not only makes their goods less expensive to foreign buyers but also boosts profits when they repatriate their foreign earnings back home.

Posted in: World business