Tokyo's Nikkei average rose for an eighth straight session to its highest close in 10 months on Monday, bolstered by gains in Sony Corp after news the electronics giant would reshuffle its management. The Nikkei climbed 52.31 points, or 0.44 percent, to 11,925.36, its best close since April 28. It has gained a total 3.7 percent in the last eight sessions. The streak matches an eight-day winning run in August 1999, when it gained 4.7 percent. The broader TOPIX index rose 0.65 percent to 1,199.83. The TOPIX also had its highest close since April 28.
Sony on Monday named the British-born head of its US operations, Howard Stringer, as its new chairman and chief executive to replace Nobuyuki Idei, who will step down to take responsibility for slumping earnings after five rocky years at the helm.
"The market had already written off Mr Idei and wondered when he'd be leaving and why he hadn't done so by now. So it's very positive news," said Hitoshi Yamamoto, head of Commerz International Capital Management in Tokyo.
"The brand still has the magical power to attract customers globally. Before that evaporates, the new management should turn back to the company's origins and do something new, for example by launching epoch-making new products, to restore investor confidence," he said.
Sony, the second most actively traded stock by value, gained 1.5 percent to 4,070 yen.
Data earlier on Monday showing Japanese companies increased spending on plant and equipment by a slower than expected 3.5 percent year-on-year in the last three months of 2004 had little impact on the market.
"The market is reacting to good news only and is neglecting bad news. That's the mood of this market now," said Norihiro Fujito, senior investment strategist at Mitsubishi Securities.
"Given the US economy is expanding at a favourable pace and earlier fears about a hard-landing in China have proven groundless, it's unlikely that only Japan will get stuck in a recession. They are the two main engines for Japan," he said.
Analysts also said optimism remained that the Japanese economy would return to a growth path this year, with machinery orders data on Thursday likely to underline this, a factor behind recent gains in major banks.
Mizuho Financial Group, Japan's biggest banking group by assets, rose 1.7 percent to 529,000 yen, its highest close since mid-April.
Resona Holdings Inc, Japan's fifth-biggest bank, was up 2.3 percent at 220 yen, its highest close since late April, after Deutsche Bank began coverage of the shares with a "buy" rating and a 12-month price target of 240 yen.
Steel, shipping, oil, mining and other stocks benefiting from an anticipated expansion of the global economy were among top gainers again on Monday.
A better than expected US jobs report late last week boosted optimism about the world's biggest economy.
"I think materials, including petrochemicals, are among this year's investment themes given the brightening outlook for the global economy. Countries such as China and India won't stop growing," said Commerz International's Yamamoto.
Sumitomo Metal Industries Ltd, Japan's number three steel maker, rose 2.6 percent to 200 yen, its highest close since August 1998, after surprise news last week that it would raise its year-end dividend by 2.5 yen to 4 yen per share. Matsui Securities Co, one of Japan's top online brokers, rose 0.8 percent to 3,950 yen, its highest close since listing in 2001, as high trading volumes recently, partly due to individual investors using the Internet, have fanned hopes for better earnings at the company.
Monday's volume on the Tokyo bourse's first section was 1.98 billion shares. Volume has exceeded 1.9 billion shares in each of the past five sessions. That compared with last year's daily average of 1.45 billion shares. Advancers outpaced decliners 1,059 to 450.
A notable loser was Yaskawa Electric Corp, an industrial robot maker that on Friday said it would not pay any dividend in the year to March 31. It slumped 7.6 percent to 620 yen. Previously, Yaskawa expected a dividend of five yen per share.
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