TOKYO —
Tokyo stocks rose 1.58% Friday to end at a six-month high, with investors encouraged by a weaker yen and strong U.S. economic data.
The Nikkei 225 index at the Tokyo Stock Exchange closed up 146.07 points at 9,384.17, the highest finish since August, while the Topix index of all first-section issues added 1.27%, or 10.20 points, to 810.45.
Yumi Nishimura, senior market analyst at Daiwa Securities, said the Nikkei was likely to firm up its ground in coming sessions but may face profit-taking around the 9,500-9,600 level.
“It’s not going to be easy to break that level,” she told Dow Jones Newswires.
In New York on Thursday, the Dow Jones Industrial Average rose 0.96% to 12,903.71—its highest finish since May 2008.
Positive signs for the U.S. economy poured in, with weekly new claims for unemployment benefits falling to their lowest level since March 2008, while data on January housing construction confirmed a pickup in the sector.
Also providing support was news that the European Central Bank plans to swap its Greek debt holdings for new bonds once debt-restructuring negotiations are complete, moving Athens a step closer to securing a second bail-out package.
The Bank of Japan’s surprise credit easing earlier this week, along with the latest batch of US data, would likely continue to support Tokyo stocks, said Kenichi Hirano, operating officer at Tachibana Securities.
“Even if stocks fall somewhat on any negative developments in Greece, buying will come in. Behind that is liquidity (provided by the Bank of Japan),” he said.
The dollar on Friday rose past 79.00 yen for the first time since Japan’s yen-selling intervention in late October. The greenback traded at 79.11 yen in Tokyo afternoon trade against 78.90 yen in New York late Thursday.
The yen was at 103.82 to the euro against 103.63 yen in New York.
© 2012 AFP
