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Asia: Exporters benefit from weaker yen

Asian stocks rose to a fresh new high Friday as the yen weakened on speculation the Bank of Japan will increase stimulus efforts.

Asian stocks rose to a fresh new high Friday as the yen weakened on speculation the Bank of Japan will increase stimulus efforts.

Japan's Nikkei average soared 0.7% to 10,395.18 on the last trading day of the year - its biggest peak since March 10th 2011.

Investments were backed by a fall in the yen which was 86.64 to the dollar Friday - its lowest point in two years. It made for cheaper Japanese exports and increases in earnings of exporters abroad.

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The results come off the back of Prime Minister Shinzo Abe's call for the Bank of Japan to set a 2% inflation target and to ease policy to beat deflation.

Abe, who this month won in a parliamentary election, has promised to enforce measures for a weaker local currency to revive the flagging economy.

Exporters in Tokyo continued to progress by week's end amid a lower yen with Sharp Corp. up 1.7% and Nissan Motor 2.0% higher.

In China, the Shanghai Composite Index climbed 1.24%, on the back of financial reforms bolstered by banks. Bank of China added 0.3% and Bank of Communications gained 0.6%.

In Hong Kong, the Hang Seng Index was up 0.21%.

The Asia Dow rose 0.63% while Singapore saw a 0.25% jump and Sansex reported a 0.64% rise.

RD

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