Japan Economic Newswire 

Monday July 11, 2016 7:21 PM

Tokyo stocks gained over 2 percent Tuesday morning, with the Nikkei index revisiting the 16,000 level for the first time since late June, on a weaker yen and growing hopes for fresh stimulus from the government following the ruling bloc's election victory.

The 225-issue Nikkei Stock Average gained 415.54 points, or 2.65 percent, from Monday to 16,124.36. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 32.53 points, or 2.59 percent, at 1,288.32.

Every industry category on the main section gained ground, led by securities, other financial services and bank issues.

Tokyo stocks opened sharply higher on growing stimulus hopes after Prime Minister Shinzo Abe said Monday he will tell the finance and economic policy ministers to begin compiling stimulus steps to support the domestic economy following the overwhelming victory of his ruling Liberal Democratic Party and its coalition partner Komeito in the upper house election, said Toshikazu Horiuchi , equity strategist atIwaiCosmo Securities Co.

The Nikkei index traded above the 16,000 line for the first time since the British vote to leave theEuropean Union rattled financial markets on June 24 .

"Risk appetite is recovering on hopes for fresh stimulus," Horiuchi said. "The Japanese government is said to be considering a stimulus package that is likely to exceed 10 trillion yen while there is also speculation in the market that the Bank of Japan could ease its policy at the board meeting this month."

Horiuchi also said that the yen's depreciation against the U.S. dollar was supporting shares. The Japanese currency briefly fell to the lower 103 zone from the lower 102 range Monday afternoon. "For now, the weakening yen is easing concerns about corporate profit outlooks," he said.

On the First Section, advancing issues outnumbered declining ones 1,705 to 208, while 53 ended the morning unchanged.

The yen's retreat against the U.S. dollar supported export-related shares.

Nissan Motor gained 41 yen , or 4.2 percent, to 1,008 yen and tire maker Bridgestone rose 106 yen , or 3.3 percent, to 3,359 yen .

Mitsubishi Heavy Industries gained 10.80 yen , or 2.5 percent, to 441.80 yen after the heavy machinery manufacturer's subsidiary said Monday it has won an order to deliver up to 20 units of the Mitsubishi Regional Jet passenger aircraft to Rockton AB , a regional aircraft leasing company in Sweden .

Sakata Seed rose 57 yen , or 2.5 percent, to 2,320 yen after the major seed producer reported Monday a record net profit for the business year through May.

Source:Kitco