Mitsubishi UFJ Financial Group, Inc. (MUFG)

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Tokyo Shares Rise, Driven By a Recovery in Insurers, Banks
13 hours 15 minutes ago - DJNF

By Kosaku Narioka

TOKYO--Japanese stocks rose on Monday, driven by a recovery in insurers and banks, on follow-through buying after the European Central Bank's bold monetary stimulus on Thursday.

The Nikkei Stock Average rose 294.88 points, or 1.7%, to 17233.75. The index lost 0.4% last week.

Fears of a possible global recession or a banking crisis are easing due to decent U.S. economic indicators over the past few weeks. The ECB's indication last week that further rate cuts should not be expected for now is also soothing some concerns about the health of European banks.

In addition, gains in crude oil prices on Friday amid reduced fears about supply glut were supportive to stocks.

Financials such as insurance firms and banks led the market higher.

Dai-ichi Life Insurance Co. gained 8.6% to 1,497.5 Japanese yen ($13). Mitsubishi UFJ Financial Group Inc. rose 4.3% to Y578.4.

The market focus is now on the Bank of Japan's policy outcome due Tuesday and whether this will sustain the recent positive momentum. Few economists expect the BOJ will announce a big additional stimulus measure because the Japanese central bank took a major step at the last meeting, in January, of introducing a negative interest rate policy.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

March 14, 2016 02:43 ET (06:43 GMT)

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