Tokyo stocks sharply up after Fed taper decision

Tokyo stocks jumped nearly two percent in opening trade Thursday after the US Federal Reserve announced plans to scale back its bond-buying programme in January. The benchmark Nikkei 225 index gained 1.85 percent, or 288.12 points, to 15,875.92 in the first few minutes of trading. The Federal Reserve announced Wednesday it would start tapering its huge stimulus programme next month, giving a vote of confidence in the recovery of the US economy and jobs market. The Fed will spend $75 billion on bonds each month from January, down from the $85 billion monthly asset purchases it has made for a year, the Federal Open Market Committee said after a two-day monetary policy meeting. The Fed decision boosted the dollar and US share prices Wednesday. The greenback was at 104.13 yen early Thursday against 104.20 yen in New York Wednesday afternoon. The dollar was below 103 yen in Tokyo Tuesday afternoon. The euro bought $1.3685 and 142.51 yen early Thursday compared with $1.3680 and 142.56 yen in US trade. New York stocks surged to new records. The Dow Jones Industrial Average soared 1.84 percent to 16,167.97, while the broad-based S&P 500 jumped 1.66 percent to 1,810.65. Both were records.