STOCK MARKET WATCH -- Wednesday, 26 December 2012

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31. ASIA STOCKS RISE AS JAPAN GETS NEW GOVERNMENT

http://hosted.ap.org/dynamic/stories/W/WORLD_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-26-04-11-12

BANGKOK (AP) -- Asian stock markets rose Wednesday as traders snapped up stocks before the end of the year, while the Tokyo benchmark hit a nine-month high after a new, pro-business government prepared to assume leadership in a country plagued for years by economic lethargy.

Japan's Nikkei 225 index surged 1.5 percent to close at 10,230.36 as a further weakening yen gave momentum to the country's major exporters. That was its highest close since March 27.

Incoming Prime Minister Shinzo Abe has put pressure on the Bank of Japan to raise its inflation target from 1 to 2 percent to extricate the country from two decades of deflation - continually dropping prices - which has deadened economic activity.

Abe named a new Cabinet on Wednesday, following the resignation of Prime Minister Yoshihiko Noda's government. Abe has urged the central bank to take steps to dampen the strength of the country's currency. A strong yen has hobbled big exporters like Toyota by eroding the value of repatriated earnings and making Japanese products more expensive overseas.