Tokyo stocks closed at a fresh 15-year high Wednesday on a weaker yen and solid Japanese growth data, but auto parts giant Takata tumbled after a recall of US cars with potentially deadly airbags was widened. The Nikkei 225 index at the Tokyo Stock Exchange climbed 0.85 percent, or 170.18 points, to 20,196.56, its best finish since April 2000, while the Topix index of all first-section shares gained 0.62 percent, or 10.07 points, to 1,643.40.
Japan's main stock market got a lift as data showed the world's number three economy grew 0.6 percent in the first quarter after limping out of recession in the previous three months. The latest result was better than a revised 0.3 percent expansion in the final quarter of 2014 and beat the market median forecast of a 0.4 percent on-quarter increase.
"The January-March (gross domestic product) growth data were good... and buoyed sentiment," said Takuya Takahashi, senior strategist at Daiwa Securities. "Corporate earnings for the fiscal year to March were (also) generally good and many companies took measures to return surplus to shareholders," he added, referring to share buybacks and dividend hikes.
The falling yen also lifted investor sentiment towards Japanese exporters, whose profitability benefits from the weaker currency. The dollar rallied Tuesday on the European Central Bank's plan to step up asset purchases under its massive stimulus programme and strong US housing data. In forex markets, the dollar bought 120.91 yen, up from 120.68 yen in New York and well above 119.94 yen in Tokyo earlier Tuesday.
Takata plunged 10.21 percent to 1,353 yen, after it agreed to double the recall of US cars with potentially deadly airbags to a record of nearly 34 million. Toyota rose 0.49 percent to 8,405 yen, and brokerage Nomura was up 1.08 percent at 810 yen.
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