Stocks in Tokyo led most Asian markets higher Friday after some of the world’s largest economies agreed to put their weight behind Japan to keep the yen from rising as the country struggled to cope with the aftermath of last week’s earthquake.
The Nikkei 225 index in Tokyo sprang to life, adding 244.08 points, or 2.7%, to 9,206.75, but still ended the week with losses of more than 10%.
Hong Kong’s Hang Seng Index regained 15.80 points, or 0.1%, to 22,300.20
The day’s rally came after the Group of Seven industrialized nations — of which Japan is a member — said they will make concerted efforts to intervene in the foreign-exchange markets to prevent "excess volatility and disorderly movements." The agreement is the first time the G-7 has decided to interfere in the currency markets in more than a decade.
The G-7 news and reported intervention by Japanese authorities bolstered the U.S. dollar — which hit an all-time low of 76.25 yen Thursday — to ¥81.42 from ¥78.93 late in New York trade. The euro jumped to ¥114.38 from ¥110.58.
Among the big stock movers, Taiheiyo Cement Corp. climbed 15.3%, JFE Holdings Inc. added 3.6%, Toshiba Corp. rose 7.5% and Fast Retailing Co. jumped 6.4%.
Sony Corp. rose 0.2%, underperforming the market after saying six of its Japanese manufacturing plants remain closed and that it is investigating whether a disruption in component supply will impact its production.
Still, some traders were circumspect about the Tokyo market’s rise, noting the G-7 action had been anticipated and Japanese officials still have a massive recovery and rebuilding task on hand.
Japanese authorities continued to make efforts to control the earthquake damaged Fukushima Daiichi nuclear-power plant amid global fears of a full-blown nuclear disaster. Radiation levels at the plant dropped on Friday, further buoying the Nikkei. Tokyo Electric Power Co., which operates the plant, soared 18.8%, paring its weekly loss to 55.3%.
Inpex Corp. and Japan Petroleum Exploration Co. climbed 6.8% and 7.4%, respectively in Tokyo. Elsewhere in the region, Woodside Petroleum Ltd. rose 3.6% in Sydney.
Sydney-listed Origin Energy dropped 1.7% after resuming trading following its plan to raise A$2.3 billion ($2.28 billion U.S.) via a share issue to reduce debt associated with its A$3.26-billion purchase of electricity assets privatized by the New South Wales state government.
Shares of PetroChina Co. reversed early gains to end 1.3% lower in Hong Kong and 0.6% in Shanghai, on profit-taking a day after it reported higher-than-expected profit growth for 2010.
In Seoul, Posco climbed 3.2% on expectations the steelmaker would benefit from quake-induced supply shortages.
In other markets:
The Shanghai CSI 300 Index tacked on 18.59 points, or 0.6%, to 3,215.69
Taiwan’s Taiex Index roared ahead 112.06 points, or 1.4%, to 8,394.75
Korea’s Kospi Index gained 22.10 points, or 1.1%, to 1,981.13
Singapore’s Straits Times Index shed 7.10 points, or 0.2%, to 2,935.78
New Zealand’s NZX 50 improved 9.92 points, or 0.3%, to 3,339.51
Australia’s S&P/ASX 200 prospered 71.10 points, or 1.6%, to 4,626.40
