Tokyo stocks closed up 2.7 per cent today as investors cheered the United States, European and Japanese central banks' efforts to stabilise financial markets after terrorist attacks, brokers said.
The Nikkei average of 225 leading issues on the Tokyo Stock Exchange rose 259.72 points to close at 9,939.60.
Dollar-buying intervention by the Bank of Japan on behalf of the Ministry of Finance (MoF) before 11:00 am (0200 GMT) pushed the headline index temporarily above the symbolic 10,000-point level but profit-taking later cut into gains, dealers said.
The Topix of all issues on the first section of the stock exchange gained 24.97 points to 1,038.06.
Trading was moderate with volume estimated at 841 million shares against 864 million the previous day.
The Bank of Japan said it would cut the official discount rate -- the rate it lends funds to private banks -- to 0.1 per cent from 0.25 per cent, on the back of coordinated rate cuts by the US Federal Reserve and the European Central Bank the previous day.
The Nikkei index was also lifted by stable moves in the US stock markets, which resumed trade Monday after closing for four business days in the wake of the terrorist attacks on New York and Washington on September 11. In New York yesterday, the Dow Jones Industrial Average shed 17.30 points or 0.19 percent to finish the session at 8,903.40 after a staggering drop of nearly 685 points on Monday.
The tech-heavy Nasdaq composite fell 24.47 points or 1.55 percent to close at 1,555.08. The Nikkei index temporarily rose above the symbolic 10,000-point mark for the first time this week but fell back below in late trade on profit-taking, brokers said.
Hi-tech and export-related issues were supported by the MoF's currency action to cap recent yen gains, they said.
Mitsubishi Electric Corp. surged 4.8 percent or 20 yen to 441 yen as investors welcomed a concrete restructuring plan from the nation's number three electrical machinery maker.
Nintendo surged 2,000 yen or 14.93 percent at 15,400 yen, after having lost nearly 3,000 yen since the US attacks due to demand concerns.
Also in the game sector, Konami closed up five yen at 2,825 yen.
AFP