Tokyo stocks rebound on possible corporate tax cut

Tokyo stocks sharply rebounded on Thursday after falling for the past three sessions, driving a key index to hit a two-month high on expectations that the government will lower a corporate tax rate. The benchmark Nikkei 225 Stock Average on the Tokyo Stock Exchange (TSE) rose 178.59 points, or 1.22 percent, from Wednesday to 14,799.12, its highest close since July 18. The broader Tokyo Stock Price Index, which includes all shares on the market's First Section on the TSE, was also up 9.34 points, or 0.77 percent, to 1,220.49, with 29 of 33 subindexes ending in positive territory. Investors were cheered by media reports saying that the government is expected to commit to a corporate tax cut as part of its stimulus package to be announced soon. Yen depreciation against the dollar encouraged investors to buy export-oriented shares. In the currency markets, at 4:30 p.m. (0730 GMT), the dollar fetched JPY 98. 91-94 against JPY 98.38-48 in New York and JPY 98.53-55 in Tokyo at 5 p.m. Wednesday.