Tokyo Stocks Surged in Expectation for U.S. Insurance Rescue Plan

Japan Stocks soared Monday encouraged by the upcoming U.S. rescue plan to be announced Monday and the news that Chinese SWF might buy Japanese stocks as much as $10B.

The 225-issue Nikkei Stock Average Monday surged 414.11 yen, or 3.07 percent to 13,914.57 yen. The broader Topix index of all First Section issues on the Tokyo Stock Exchange (TSE) was up 34.17 points, or 2.59 percent, to 1,355.54.

Led by the high expectation of the U.S. rescue plan to be announced on Monday, stocks of Japanese insurance companies like Mitsui Sumitomo and Sompo Japan were soared especially.

If the stocks level recovered to the 14,500 line, Japan stock exchange will become much more activated, said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC Co.

Among the stocks of TSE first section, 1511 issues increased, and 162 declined. The trading volume reached 2.240.46 billion stocks, 2.6284 trillion yen.

Japan currency is being traded around 107 yen per 1 U.S. dollar.