Japan Stocks Rally for Third Day on U.S. Economic Stimulus Plan

Japanese stocks rallied for a third day after U.S. lawmakers agreed on a plan to pay rebates to families to boost consumer spending.

Toyota Motor Corp., the nation's largest automaker, climbed 3.4 percent, while Canon Inc. added 3.7 percent after the yen weakened against the dollar, increasing the value of its U.S. sales. All of the 33 industry groups included in the Topix index rose.

The Bush administration and Congress yesterday announced agreement on a stimulus package that will give families rebates of as much as $600 for individuals and includes incentives intended to spur business investment in equipment.

The Nikkei 225 Stock Average added 277.29, or 2.1 percent to 13,370.07 as of 10:04 a.m., paring its loss for the week to 3.5 percent. The broader Topix jumped 36.19, or 2.8 percent, to 1,320.64. The benchmark has slipped 1.5 percent this week, its fourth decline in as many weeks this year.

Nikkei 225 futures expiring in March rose 2.6 percent to 13,400 in Osaka and gained 2.6 percent to 13,395 in Singapore.

TradingEconomics.com, Bloomberg
1/24/2008 6:21:38 PM