Japan's Nikkei stock index climbed 2.2 percent on Thursday for its best day in over a month, as property shares climbed on expectations for an economic recovery and exporters got a boost from a weaker yen. Aozora Bank and Shinsei Bank soared on news they were in merger talks, while Tokyo Electron and other tech shares rose after their US tech peers drew strength in the wake of stronger-than-expected quarterly results from software maker Oracle Corp.
The benchmark Nikkei gained 205.76 points to 9,796.08, completely erasing losses sustained in a 2.8 percent fall earlier this week and marking its best day since May 19 in percentage terms. The broader Topix gained 1.9 percent to 919.77. Among notable gainers were property shares such as Mitsubishi Estate, climbing on a combination of a sense that the domestic economy is improving and recent positive brokerage reports on the sector. Mitsubishi Estate rose 5.7 percent to 1,585 yen and Tokyu Land gained 6.4 percent to 434 yen. The real estate sector rose 5.1 percent, becoming the biggest gainer among the subindexes.
The Nikkei's gains put it solidly above its 25-day moving average, a closely watched technical level among Japanese equities traders that now comes in around 9,700. The 25-day moving average had acted as support for the Nikkei over the course of its three-month rally since March, but became a resistance level after the average fell below it earlier this week. Exporters such as Honda Motor Co climbed as a result, with Honda gaining 2.3 percent to 2,625 yen and Toyota Motor Corp up 2.2 percent at 3,700 yen.
Canon Inc and Sony Corp benefited from that as well as from gains among tech shares in the United States, with Canon rising 2.2 percent to 3,270 yen and Sony up 2 percent at 2,515 yen. Aozora Bank surged 10.8 percent to 154 yen and Shinsei Bank soared 11 percent to 161 yen. Mitsubishi Corp and other trading houses gained after prices of metals climbed overnight, with copper rising 3 percent after US durable goods orders for May were better than expected, raising hopes the US economy may be on the mend.
Mitsubishi gained 4.4 percent to 1,817 yen, Mitsui & Co rose 3.7 percent to 1,155 yen and Itochu Corp gained 2.6 percent to 663 yen. Trade lightened, with 2.2 billion shares changing hands on the Tokyo Exchange's first section compared with last week's daily average of 2.5 billion. Advancers outnumbered decliners by more than 8 to 1.