Nikkei share average up two percent, futures lead
Sunday August 25, 10:19 pm ET
biz.yahoo.com
TOKYO, Aug 26 (Reuters) - Tokyo's Nikkei share average climbed two percent on Monday morning as a large buy order in the futures market sparked a broad-based rally led by blue chips such as Toyota Motor Corp (Tokyo:7203.T - News).
The Nikkei (^N225 - News) rose 200.75 points or 2.03 percent to 10,068.20, extending a winning streak to five sessions and breaking the psychologically important 10,000 mark for the first time since August 9.
The capital-weighted TOPIX index (^TOPX - News) was up 14.60 points or 1.52 percent at 977.88 by mid-session.
"To be honest I'm pretty surprised at how strong we are today," said Tokio Furuta, a general manager in the equities trading division of Tokai Tokyo Securities.
"I don't see any fundamental reason for today's rise, but futures kindled the flame and investors jumped onto the bandwagon after that, buying back battered shares," he added.
Traders said a large order for Nikkei 225 futures was placed early morning, sparking the rally.
Toyota, Japan's leading automaker, put on 1.99 percent to 3,080 yen and was the highest traded issue by value on the first section of the Tokyo bourse.
Rival Nissan Motor Co Ltd (Tokyo:7201.T - News) rose 2.27 percent to 900 yen.
A growing consensus that U.S. stocks have bottomed out was also cheering sentiment, traders said.
The Dow Jones industrial average (CBOT:^DJI - News) slid two percent on Friday, but the broader market managed to log its fifth straight week of gains for the first time in two years.
Among many battered issues to attract buyers was Furukawa Electric Co Ltd (Tokyo:5801.T - News), the world's second-largest fibre optics maker, which put on 4.18 percent to 377 yen.
Its share price is still less than a half of a year-to-date high of 829 yen struck in March. |
