The Nikkei climbed 2 percent on Wednesday, with talk that Japan's prime minister could add details to his economic reform plans this week helping the blue-chip stock index outpace its Asian peers.
Speculation that Prime Minister Shinzo Abe could on Thursday flesh out details of the so-called "third arrow" of a three-pronged strategy to get Japan's economy back on its feet, pushed the yen down and gave the Nikkei some momentum, traders said.
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"I think that rumor is certainly out there and we are hoping for more details on the reform plans," said Glenn Wood, head of sales, global, at Mitsubishi UFJ Morgan Stanley Securities in Tokyo. "The market still has a long way to go in terms of factoring in any upside on the third arrow of Abe's economic reform plans."
The Nikkei was up 2 percent in early afternoon trade in Asia at about 15,587 points, nearing a 6-1/2 month peak hit earlier this month. It outperformed the MSCI index of Asia-Pacific shares excluding Japan which was up just 0.2 percent with most markets sidelined ahead of Wednesday's Federal Reserve decision.
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