Japan Stocks End Morning Up on Optimism
1 hour, 7 minutes ago
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TOKYO (Reuters) - Japan's major stock indices hit their highest levels since July last year by midday on Monday as growing signs of global economic recovery encouraged investors to buy bank and high-tech shares.
The Nikkei ended the morning session up 1.83 percent at 10,532.96. It rose earlier to 10,548.27, a new 13-month high, exceeding the previous peak of 10,415.53 marked last Wednesday.
The broader TOPIX index was up 1.45 percent at 1,016.52, off an earlier high of 1,018.41, its best intraday level since July last year.
On Friday, the tech-laden U.S. Nasdaq posted a new 2003 closing high after a report showing surprisingly strong growth in manufacturing in the Midwest reassured investors that an upswing in the world's biggest economy was under way.
The Nasdaq's rally to levels last seen in April 2002 prompted optimism that the Tokyo market could regain its peaks from that time, given a high correlation between the Nasdaq and the tech-sensitive Nikkei, analysts said.
"Early gainers, such as steels, have already cleared the levels they were at in April last year. But lagging behind are techs as well as banks. They both seem to have room to rise further," said Kenichi Hirano, strategist at Tachibana Securities.
Mitsubishi Tokyo Financial Group, Japan's third-biggest bank, was up 3.09 percent at 701,000 yen.
Its peer Sumitomo Mitsui Financial Group, the most active issue by value, was up 1.47 percent at 413,000.
Computer and chip maker NEC Corp was up 2.87 percent at 895 yen and electronics parts maker Kyocera Corp gained 4.27 percent to 7,820.
Fanuc Ltd, the world's biggest maker of industrial robots, was up 1.17 percent at 7,790 yen after the company late last week raised its half- and full-year profit forecasts. |
