Nikkei Rises 3% On Rosy U.S. Economic Outlook

Tokyo stocks soared Thursday, Mar. 17, 2022, lifting the benchmark Nikkei over 3 percent, on the brighter US economic outlook shown by its central bank that helped push the dollar to a six-year high against the yen overnight, Kyodo News reported.

Photo Insert: On the JPX trading floor

The 225-issue Nikkei Stock Average ended up 890.88 points, or 3.46 percent, from Wednesday at 26,652.89, closing above the 26,000 mark for the first time since March 3. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 45.76 points, or 2.47 percent, higher at 1,899.01.

Gainers were led by precision instrument, machinery, and electric appliance issues, Mainichi Japan also reported.

The US dollar stayed firm in the upper 118 yen range after topping the 119 yen line overnight in New York for the first time since February 2016.

It was bought on higher US Treasury yields after the Federal Reserve said Wednesday it will raise key interest rates for the first time since 2018 and signaled six more rate increases this year to tame high inflation, dealers said.

At 5 p.m., the dollar fetched 118.66-68 yen compared with 118.70-80 yen in New York and 118.37-38 yen in Tokyo at 5 p.m. Wednesday. The euro was quoted at $1.1044-1045 and 131.05-09 yen against $1.1031-1041 and 130.97-131.07 yen in New York and $1.0959-0960 and 129.72-76 yen in Tokyo late Wednesday afternoon.

The Nikkei soared from the outset, briefly rising nearly 1,000 points, after the outcome of the Fed's two-day meeting through Wednesday helped dispel some uncertainty over the future course of the central bank's policy.

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