Japans Nikkei average rose 1.8 percent to hit a 2-1/2-month closing high on Thursday as exporters such as Sony Corp gained after unexpectedly strong US economic data sparked hopes for an economic recovery. Elpida Memory Inc soared 18 percent to 657 yen after it said it would raise 46 billion yen ($470.6 million), aiming to shore up its balance sheet and avoid breaching debt covenants.
Adding to the markets bullish tone, a US senior lawmaker said on Wednesday that an Obama administration task force is likely to recommend more aid for struggling US automakers. "Japanese stocks were boosted by speculation US stocks will rise later in the day on expectations US automakers could receive further aid," said Masayoshi Yano, a senior market analyst at Meiwa Securities.
"Investors are turning a little more optimistic about the US economy, also on economic data." The benchmark Nikkei ended up 156.34 points at 8,636.33, its highest close since January 9. The Nikkei has jumped nearly 1,600 points or over 22 percent from a 26-year closing low hit near 7,000 on March 10.
The broader Topix gained 1 percent to 826.81. The Dow Jones industrial average gained 1.2 percent on Wednesday as unexpectedly strong housing and durable goods data fuelled hopes the economy is finally on the mend. US new home sales rose at their fastest pace in 10 months in February, adding to recent data showing signs of hope in the battered housing sector. Wednesday wed 3.5 percent to 2,965 yen. Advantest Corp gained 4 percent to 1,592 yen.
Fuji Electric Holdings Co rose after the Nikkei business daily said on Thursday that Fuji and TDK Corp planned to merge their uninterruptible power supply operations in October, forming a venture larger than the UPS operations of current market leader Mitsubishi Electric Corp Fuji Electric advanced 6 percent to 124 yen, while TDK was up 0.5 percent at 3,990 yen.
Banks rose, with Mitsubishi UFJ Financial Group, Japans top lender, gaining 1.5 percent to 540 yen and Sumitomo Mitsui Financial Group advancing 2.1 percent to 3,960 yen. But drugmakers Takeda Pharmaceutical Co lost 3.5 percent to 3,640 yen and Eisai Co sank 2.9 percent to 3,040 yen.
Among stocks considered to have stable dividend yields, Tokyo Electric Power fell 1.3 percent to 2,585 yen, after gaining the previous day. Credit Saison Co soared 7.8 percent to 970 yen after the consumer lender unveiled a plan to restructure its affiliate Atrium, an ailing real estate developer. Atrium plunged 23 percent to 133 yen as Credit Saison said it would make Atrium a subsidiary, exchanging 0.13 Credit Saison share for one Atrium share.
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