TOKYO: Tokyo shares surged on Thursday, extending a global rally as a drop in the yen powered exporters and bank shares soared after an upbeat start to the US earnings season.
After Wednesday's gains, bolstered by rising oil prices and strong Chinese trade data, investors cheered as JPMorgan Chase's forecast-beating first-quarter earnings boosted sentiment.
The banking giant also said the US economy, the world's biggest, was on a solid footing and dismissed the prospect it would slip into recession this year.
At the close, the benchmark Nikkei 225 index had soared 3.23 percent, or 529.83 points, to 16,911.05 -- its third straight positive session.
The broader Topix index of all first-section shares jumped 2.92 percent, or 38.91 points, to finish at 1,371.35.
In currency markets, the dollar rose to 109.42 yen from 109.33 yen late Wednesday in New York, well up from the levels below 108 yen seen earlier in the week.
A weaker yen is a plus for Japanese exporters' profitability and tends to spur buying of their shares.
"Once strength in the yen stops, it's easier to get a flow of Japan stock buying as they've fallen behind in the global market," Mitsushige Akino, executive officer at Ichiyoshi Asset Management, told Bloomberg News.
Automaker Toyota's shares jumped 3.25 percent to 5,806 yen and factory robotics giant Fanuc surged 4.22 percent to 19,005 yen.
Uniqlo operator Fast Retailing, a market heavyweight, jumped 3.85 percent to 29,800 yen and steelmaker JFE Holdings soared 5.76 percent to 1,771.5 yen after Credit Suisse lifted its target price on the stock.
Among Japanese banks, Mitsubishi UFJ rose 2.87 percent to 543.2 yen while rival Sumitomo Mitsui Financial Group tacked on 3.18 percent to 3,560 yen. Mizuho Financial Group was up 2.88 percent at 171.3 yen.
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