Japan stocks sharply up

Share prices have risen sharply in Japan -- one of the few world stock markets open on Christmas Day.

The Nikkei index closed up by two-and-a-half percent; at one stage during the day, the rise was twice that.

It came despite industrial production figures showing a steeper decline than expected.

Analysts said the rise reflected some confidence in stabilisation measures announced by the Japanese government last week.

Meanwhile, the cabinet has adopted a new budget, with spending in the main departments falling for the first time in eleven years.

From the newsroom of the BBC World Service