Tokyo stocks jump 2.48pc by close on upbeat data
September 09, 2013 - 10:25:35 am
TOKYO: Japanese stocks soared 2.48 percent to a one-month high Monday as investors cheered Tokyo's successful bid to host the 2020 Olympics, while fresh data showed the economy grew more than expected in April-June.
The benchmark Nikkei 225 index rose 344.42 points to 14,205.23, while the Topix index of all first-section shares finished 2.19 percent, or 25.18 points, higher at 1,173.00.
Tokyo's Olympic triumph and the weakness of the yen, combined with an improving global economic outlook, offset negative factors such as weaker-than-expected US jobs data and concern over Syria, brokers said.
The dollar bought 99.70 yen in Tokyo, against 99.11 yen Friday afternoon in New York where the greenback slid on US data showing the economy had added a fewer-than-expected 169,000 jobs in August.
"Based on past data, Olympics-related shares such as infrastructure could rise for about a month until the decision on a sales tax hike is made," said Eiji Kinouchi, senior strategist at Daiwa Securities Capital Markets.
Among construction firms, Taisei was up 13.75 percent at 463 yen, while Kajima jumped 9.69 percent to 396 yen and Shimizu rallied 8.53 percent to 483 yen. Real estate firm Mitsui Fudosan added 6.35 percent to 3,430 yen and Mitsubishi Estate climbed 4.66 percent to 2,825 yen.
Traders said the Olympics would also give the market a psychological boost and help Prime Minister Shinzo Abe's pro-spending economic programme, dubbed "Abenomics".
"The Nikkei will likely rise to 15,000 by the end of September on the back of renewed hopes for Abenomics," said Mitsushige Akino, fund manager at Ichiyoshi Asset Management.
"The Olympics will likely regenerate interest in Japanese equities among foreign investors as it will make it easier for Mr. Abe to move forward with his growth strategies, and the implementation of a consumption tax hike and corporate tax cuts," he added.
Abe is considering whether to go ahead with a planned sales tax hike next year that some fear will derail any recovery. The move could see consumption taxes double to 10 percent by 2015.
Economy Minister Akira Amari said Monday that Abe would make a tax-hike decision on October 1 as he unveils a broader economic stimulus plan.
The market was also supported by data that confirmed Japan's economic recovery is on track.
Revised figures showed growth of 0.9 percent for the April-June quarter from the previous three months, compared with an initial 0.6 percent estimate.
Hisao Matsuura, strategist at Nomura Securities, said capital spending among the nation's firms, a key measure of business sentiment, rose sharply and could lead to an improvement in household spending and labour market conditions.
However, a government survey on Monday showed consumer sentiment was flat last month.
US stocks ended little changed Friday owing to uncertainty over Syria and following the disappointing jobs report, the Dow slipping 0.10 percent while the S&P 500 and Nasdaq were flat. (AFP)