Yen’s Weakening Spurs Asian Stocks

Asia’s stock markets rocketed again Monday as the Japanese government intervened to weaken the yen against the dollar.

In trying to keep the yen’s value down (and the dollar strong), Japan is actively seeking to bolster its export outlook, because a weaker currency makes goods cheaper for foreign buyers.

As the dollar rose nearly 2 yen to 122.4 yen, Japan’s Nikkei-225 stock index jumped 1.8% to 17,738.

Hong Kong stocks also soared, with the Hang Seng index up 4.4% to 13,994, its highest level since October 1997.

The Hong Kong government announced plans to sell shares it bought trying to support the market in August’s global turmoil. Instead of individual sales, the stocks will be packaged and sold as unit trusts, which traders said should be less disruptive.

Asian markets in general have rallied sharply this year on optimism that the region’s 2-year-old economic crisis is ending.

Other gainers Monday included the Singapore market, up 2.4%; the South Korean market, up 3.7%; and the Taiwan market, up 1.7%.

Year-to-date, Tokyo’s Nikkei index is up 28.2%, while the Hong Kong market is up 39.3%. Singapore is up 52.3%, South Korea 54.5% and Taiwan 31%.