Shares in Japan rallied on Tuesday, following an extended holiday weekend, as comments from Economics Minister Akira Amari fuelled buyer appetite.

Amari said the Japanese government would increase efforts to stimulate the economy and according to a report from Kyodo News he wants policy steps "to help stock prices rise."

He was reported to have said that stock prices were too low compared to fundamentals and as a result, the government would look at addressing the situation.

The benchmark Nikkei 225 index closed up 215 points at 11,369 in Tokyo after Monday's holiday. Markets in Hong Kong and China remain closed for the Lunar New Year.

The weaker yen against the dollar also spurred buyer interest. The dollar fetched ¥93.93 compared to ¥93.42 the previous session on expectations of looser monetary policy in Japan.

Financials were in demand on hopes that the government will introduce bold measures to boost growth. Shares of Nomura rallied over 5% while Mizuho Financial added 4.8%.

Investors tucked into a broad range of stocks despite reports that North Korea had exploded a nuclear device, its third nuclear test since 2006.

Elsewhere in company news Nissan declined 3.8% after it said profit in the quarter to December fell by over a third.

In other earnings news, advertising firm Dentsu surged 10.5% after it revealed a 24% increase in nine-month profit.


CJ

Related share prices