Tokyo stocks close up 1.54pc
September 10, 2013 - 9:12:03 am
TOKYO: Japanese stocks rose 1.54 percent Tuesday, extending the previous day's rally following positive growth data and Tokyo's successful bid to host the 2020 Olympics.
The benchmark Nikkei 225 index closed 218.13 points higher at 14,423.36, while the Topix index of all first-section shares climbed 1.47 percent, or 17.22 points, to 1,190.22.
"On a technical level, the market is unquestionably a bit overbought," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
"But recent data on both the US and Japanese economies, as well as the Olympics bid win has changed the game, and scepticism on Abenomics," he said, referring to Prime Minister Shinzo Abe's pro-spending economic policy.
"Prospects for a global economic rebound have allowed for more confidence in equities markets, which has made the upside direction clearer. The market should stay on a bullish general trend, accompanied by more yen weakening." Nishi added.
The Nikkei surged 2.48 percent on Monday after Japan revised up its economic growth for April-June, while better-than-expected Chinese trade data indicated the world's number two economy was also picking up after a slowdown.
Olympic-related firms rallied after Tokyo was selected at the weekend to host the 2020 Summer Games.
And on Tuesday, infrastructure plays continued to benefit. Taisei surged 13.17 percent to 524 yen, while Kajima jumped 7.82 percent to 427 yen and Shimizu rallied 5.59 percent to 510 yen.
Among real estate stocks Mitsui Fudosan added 2.47 percent to 3,515 yen and Mitsubishi Estate climbed 1.98 percent to 2,881 yen.
The food and beverage unit of drinks giant Suntory added 0.56 percent to 3,535 yen, a day after it said it would buy the top-selling Lucozade and Ribena beverage brands from British drugs firm GlaxoSmithKline for $2.1 billion.
US stocks rose Monday, helped by optimism that a military strike on Syria could be avoided following a Russian proposal to put the Middle Eastern nation's chemical weapons under international control. The Dow Jones Industrial Average gained 0.94 percent to 15,063.12.
On currency markets Tuesday, the dollar was at 99.75 yen, from 99.69 yen in New York. (AFP)