Tokyo - Tokyo stocks rose 1.14 percent Thursday thanks to a weaker yen, as speculation swirls that Prime Minister Shinzo Abe is considering a delay to next year's planned sales tax hike.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange added 195.74 points to finish at 17 392.79, while the Topix index of all first-section shares climbed 0.90 percent, or 12.46 points, to 1 389.51.
The yen hit a new seven-year low of 116 to the dollar at one point Tuesday - a plus for Japanese exporter shares - on speculation that Abe will put off another sales tax rise after a similar move in April hit a tentative recovery in the economy by slamming the brakes on consumer spending.
Major Japanese newspapers reported Wednesday that Abe may call a snap election next month if he decides to put off the sales tax hike.
Eyes are now on Japan's July-September gross domestic product data due Monday.
Investrust chief executive Hiroyuki Fukunaga told Dow Jones Newswires:
“Speculation over the deferment will continue to simmer at least until the release of third-quarter gross domestic product figures.”
In forex trade, the dollar bought 115.69 yen, against 115.52 yen in New York.
In share trading, Toyota jumped 1.33 percent to 6 930.0 yen, while Panasonic gained 1.09 percent to 1 436.5 yen, but Sony lost 0.65 percent at 2 350.0 yen.
On Wall Street investors stepped back on profit-taking and after US, British and Swiss regulators levied more than $4.0 billion (R45 billion) in fines on six of the world's largest banks - including three US lenders - for manipulation of the foreign exchange market.
The Dow edged down 0.02 percent and the S&P 500 fell 0.07 percent.
However, the Nasdaq added 0.31 percent to sit at highs not seen since March 2000. - Sapa-AFP