Tokyo shares close up 2.08%

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Tokyo stocks have jumped 2.08 per cent following a rally on European markets after the eurozone and British central banks signalled their easy-money policies will remain in place.

The benchmark Nikkei 225 index closed up 291.04 points to 14,309.97, while the Topix index of all first-section shares gained 1.53 per cent, or 17.87 points, to 1,188.58.

With the US market closed on Thursday for the Independence Day public holiday, Asia took its lead from Europe, where stocks jumped after the European Central Bank indicated that rates will remain at low levels for the foreseeable future.

ECB chief Mario Draghi said his bank’s decision-making governing council “expects the key ECB interest rates to remain at present or lower levels for an extended period of time”.

The Bank of England also held its main interest rate steady and stuck to its stimulus plans at the first meeting headed by its new governor, Canadian Mark Carney.

The yen’s slide against the dollar also helped lift the Tokyo bourse.

The dollar stood at 100.35 yen, compared with 99.71 yen in London Thursday, while the euro bought $1.2892 and 129.38 yen, off from $1.2922 and 129.62 yen in London.

Tokyo trading remained thin, ahead of the release of the monthly US labour report later in the day.

“All eyes are now on the US non-farm payroll figures due later in the global trading day,” an equity trading director at a foreign brokerage told Dow Jones Newswires.

“Individual investor support for the market remains resilient, with confidence in the US economic rebound (and) the relatively strong dollar,” the person said.

Among major Tokyo shares, Toyota Motors rose 2.10 per cent to 6,310 yen, Sony added 0.64 per cent to 2,195 yen and Mitsubishi UFJ Financial Group rose 0.93 per cent to 646 yen.