Japanese shares jumped, with the Nikkei 225 Stock Average closing at its highest since May, as the yen weakened after Finance Minister Taro Aso said the nation must retain the option to intervene in currency markets.
Japan’s Topix index fell on a partial shutdown of the U.S. government. Losses were limited as the Tankan survey of large manufacturers beat estimates and Prime Minister Shinzo Abe confirmed a plan to lift the sales tax.
Asian stocks tumbled, dragging down the MSCI Asia Pacific Index by the most in 14 months after a U.S. jobs report missed economist estimates and concern grew that Europe’s sovereign-debt crisis is spreading.
Japanese shares dropped for a fourth day after the Dutch prime minister resigned over austerity measures, deepening concern over Europe’s debt crisis, and a leading gauge of China’s economic growth slowed.
Japanese bonds rose, pushing benchmark 10-year yields to the lowest level since 2003, amid speculation the government will persuade the central bank to take further measures to keep borrowing costs low.
Japanese shares closed higher, after swinging between gains and losses most of the day, as volume remained below the 30-day average and the yen traded above 95 to the U.S. dollar ahead of a Federal Reserve Policy meeting.