Japan's Nikkei average jumped almost 2 percent and at one point hit a fresh five-month high on Thursday, encouraged by strong US economic data, a softer yen and hopes of steps in Europe to ease the sovereign debt crisis. US private-sector payrolls achieved their biggest gain in three years, according to ADP data, while global manufacturing picked up speed, boosted by China and Germany.
"Foreign funds came back today and are the driving force behind this jump, as expectations for the US economy to pick up speed are high after yesterday's data," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities. A Goldman Sachs prediction that the Nikkei will gain about 20 percent in the next year also boosted sentiment.
Speculation that the European Central Bank could step up its purchases of government debt also supported sentiment, although currency market analysts were sceptical. A US official told Reuters Washington would support boosting an EU rescue facility via IMF funds, lifting US stocks on Wednesday.
Blue chips exporters led the Nikkei's advance with construction machinery maker Komatsu Ltd jumping 4.6 percent but Toyota Motor Corp fared badly, one of the weakest Nikkei 225 component in percentage terms, after a dismal US sales performance in November. The Nikkei made its biggest daily gain in two weeks, adding 1.8 percent or 180.47 points to 10,168.52. At one stage it jumped 2 percent, hitting a fresh five-month intraday high of 10,187.59.
The broader Topix index was 1.3 percent higher at 877.21. Some 1.9 billion shares changed hands on the Tokyo exchange's first section, on par with last week's closing average. Advancing stocks outnuumbered declining ones by more than 5 to 1. The yen fell across the board on Wednesday as the euro and higher yielding currencies staged a sharp rebound and the dollar also gained on the Japanese currency.
The benchmark index rallied 8 percent in November, its best monthly performance since March, with foreigners shifting funds back to lagging Tokyo equities after US monetary easing lifted expectations of more liquidity in financial markets. Toyota's shares, the most actively traded by turnover on the main board, fell 0.6 percent to 3,290 yen. In contrast to a 17 percent climb for US industry-wide auto sales, Toyota's sales dropped 3 percent in November.
It has also told US dealers it will pay for a secondary repair related to a massive safety recall on its top-selling Camry for sticking accelerator pedals. Skymark Airlines Inc, Japan's third-largest carrier, rallied 4 percent to 1,043 yen after saying it plans to hire hundreds of new staff from those who have left restructuring Japan Airlines.
Comments
Comments are closed.