Japanese shares soared in Monday morning trading as United States President Barack Obama announced a deal with congressional leaders to allow the federal debt limit to be lifted to avert a default.
The benchmark Nikkei 225 Stock Average gained 180.87 points, or 1.84 per cent, to trade at 10,013.9 while the broader—based Topix index was up 14.82 points, or 1.76 per cent, at 856.19.
Export—oriented issues were bolstered by the US debt limit deal and the yen’s moderation against major currencies. The United States is a major market for export—reliant Japan.
A weaker yen makes Japanese goods less expensive and improves repatriated earnings.
In the United States, the 2.4—trillion—dollar increase must still be approved by the Senate and the House of Representatives before a Tuesday deadline.
On currency markets at 11 am (0200 GMT), the dollar traded at 77.81—82 yen, up from Friday’s 5 pm quote of 77.58—60 yen.
The euro traded at 1.4386—4390 dollars, up from 1.4279—4281 dollars Friday, and at 111.93—98 yen, up from 110.78—82 yen.
