TOKYO (Kyodo) — The Nikkei stock index ended at a six-month high in brisk trading Friday on hopes of a U.S. economic recovery and an optimistic earnings outlook for domestic businesses amid the weakening of the yen.
The 225-issue Nikkei Stock Average finished up 146.07 points, or 1.58 percent, from Thursday at 9,384.17, its highest close since 9,659.18 on Aug. 4. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 10.20 points, or 1.27 percent, higher at 810.45.
Almost all 33 sectors on the TSE gained, led by the mining, real estate and rubber products sectors. The sea transport, information and communications, and electricity and gas sectors were the sole decliners.
The TSE’s Second Section index for medium-sized companies, meanwhile, extended its winning streak to 24 trading days, matching the second-longest winning streak in history posted between August and September in 1968. The all-time winning streak was a 26-day stretch from April to May in 1975. The index ended up 12.82 points, or 0.56 percent, at 2,296.16 on Friday.
Tokyo stocks tracked gains overnight in New York, where the Dow Jones Industrial Average ended at its highest since May 2008 on a smaller-than-expected number of U.S. jobless claims last week and better-than-expected U.S. housing starts in January, brokers said.
”Buying was stimulated in the Tokyo market as the recent series of strong U.S. economic data provided fresh clear signs that the U.S. economy is recovering,” said Hiroichi Nishi, equity division manager at SMBC Nikko Securities Co.
Stocks advanced also as concern over Japanese exporters’ earnings abated, thanks to the yen’s continued weakening, the brokers said. The U.S. dollar topped the 79 yen line for the first time in about three and a half months Friday morning, while the euro also rose to the 104 yen line, up from the lower 102 yen level the previous day.
”The Tokyo market genuinely reacted positively to the yen’s weakening and strong gains in New York stocks,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
After initial buying, stock prices moved in a narrow range in the afternoon as investors unwound part of their stockholdings ahead of the weekend, brokers said.
Among major exporters, Honda Motor climbed 68 yen, or 2.4 percent, to 2,950 yen and industrial robot maker Fanuc added 390 yen, or 2.8 percent, to 14,250 yen.
Tire manufacturer Bridgestone rose 70 yen, or 4.0 percent, to 1,833 yen after it said it expects its group pretax profit to hit a record-high 250 billion yen this business year through December.
Retail store operator Uny surged 46 yen, or 6.6 percent, to 747 yen after it said it will launch a tender offer to buy shares it currently does not own in its convenience store unit Circle K Sunkus Co. to make it a wholly owned subsidiary. Circle K Sunkus was limit-up at 1,630 yen, up 300 yen, or 22.6 percent, from Thursday’s close.
Among decliners, Unicharm, a leading manufacturer of disposable diapers, dropped 55 yen, or 1.3 percent, to 4,085 yen following recent rises.
On the First Section, advancing stocks outnumbered declining ones 1,083 to 437, with 154 others remaining unchanged.
Trading volume on the main section rose to 2,625.95 million shares from Thursday’s 2,458.69 million.
