Tokyo's Nikkei Ends At Highest This Year After OPEC Deal

TOKYO, Dec 1, (UrduPoint / Pakistan Point News - 01st Dec, 2016 ) - Tokyo's benchmark stock index on Thursday jumped to its best close this year, as energy companies soared on an OPEC deal to cut oil production and boost prices.

Exporters, meanwhile, benefited from a fall in the Yen to its weakest level in more than nine months as investors welcomed the agreement at the oil cartel, which sent crude prices surging Wednesday.

Japanese energy explorer Inpex ploughed 9.95 percent higher to 1,193 yen and Japan Petroleum rocketed 12.20 percent to 2,611 yen after OPEC said its 14 members had agreed on specific targets that will reduce production by 1.2 million barrels a day from next month.

Key non-member Russia also committed to a cut. Tokyo's Nikkei 225 ended the day up 1.12 percent, or 204.64 points, at 18,513.12, while the broader Topix index of all first-section issues gained 0.

94 percent, or 13.84 points, to 1,483.27.

The Dollar, which rose to highest levels since mid-February against Japan's urrency in morning trade, bought 114.13 yen in afternoon deals. The greenback won support from growing optimism over the US economy and expectations Donald Trump will fan inflation -- forcing a rise in interest rates -- with his big spending and tax cutting plans.

The Federal Reserve's Beige Book survey, released Wednesday, said the world's largest economy continues to expand nationwide, while a reading of private-sector employment showed hiring at a much faster pace in November than October.

"What's key is the rise in expected (US) inflation," said Norihiro Fujito, a Tokyo-based senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.