Tokyo, Aug. 18 (Jiji Press)–The key Nikkei average finished above the 10,000 threshold for the first time in one year on the Tokyo Stock Exchange Monday, as foreign investors snapped up a broadrange of issues amid expectations for Japan’s economic recovery.<\/p>\n
A series of Japanese economic indicators released recently, including stronger-than-expected gross domestic product data in April-June announced last week, helped solidify positive views about the course of the Japanese economy, brokers said.<\/p>\n
“Some foreign investors who previously saw Japan’s economy as remaining sluggish became comfortable in buying Japanese stocks thanks to the GDP data,” said Takayuki Suezaki, equity general manager at Nippon Global Securities.<\/p>\n
The 225-issue Nikkei average surged 169.50 points, or 1.7 pct, from Friday to finish at 10,032.97, the highest closing sinceAug. 26, 2002. The average lost 50.00 points on Friday.<\/p>\n
The TOPIX index of all first-section issues closed up 11.22 points, 1.2 pct, at 976.00. It was down 1.16 points on Friday.(MORE)ADD:<\/p>\n
Advancing issues outnumbered decliners 1,165 to 273 on the first section, while 84 issues ended flat.<\/p>\n
Volume remained heavy, amounting to 1,437 million shares, compared with Friday’s 1,414 million shares.<\/p>\n
Stocks got off to a solid start after Wall Street stocks rose modestly on Friday despite the biggest-ever power outage in North America.<\/p>\n
The Nikkei average gained further ground in the afternoon, supported by buying of stock index futures from hedge funds, brokers said.<\/p>\n
Cyclical stocks continued to draw active buying, reflecting investor hopes for Japan’s economic recovery. Many issues among steelmakers, shipping companies and machinery makers rewrote their year-to-date highs.<\/p>\n
Also helping to bolster purchases were growing prospects of brisk earnings of Japanese firms. Hiroichi Nishi, equity general manager at Nikko Cordial Securities Inc. said, “Investors took a cue from upward revisions of earnings projections announced by many firms lately.”<\/p>\n
Although selling on a rally and company pension funds’ moves to cash out assets that are due to be returned to the government from this autumn were seen at levels around 10,000, the market’s energy, as evidenced by hefty trading volume, offset such downward pressures, brokers said.<\/p>\n
“The market became solid after undergoing a correction for about a month,” Nippon Global Securities’ Suezaki said. “Players are now expected to gradually strengthen a footing at the Nikkei’s levels around 10,000 and try 11,000 toward the end of September.”(MORE)THIRD:<\/p>\n
Among steelmakers, JFE surged to fresh a listing-to-date high, while Nippon Steel, Kobe Steel and Nisshin Steel rewrote their year- to-date highs.<\/p>\n
Also upbeat were machinery makers including Komatsu, Sumitomo Heavy Industries and Kubota.<\/p>\n
Paper-pulp manufacturers Oji Paper and Nippon Unipac Holding trotted higher.<\/p>\n
Technology issues were broadly higher. Of them, NEC Electronics renewed its listing-to-date high.<\/p>\n
Japan’s Big Four banking groups of Mizuho, Mitsubishi Tokyo, UFJ and Sumitomo Mitsui advanced apparently on buying from Japanese institutional investors.<\/p>\n
Warehouse operator Yamatane scored a daily limit gain amid expectations for an increase in its earnings amid rising wholesale prices of rice.<\/p>\n
In contrast, supermarket chain Aeon slumped following Friday’s announcement of a downward revision in its earnings outlook for the current business year to Feb. 20, 2004 amid cold summer weather in Japan. Its rival Ito-Yokado also ceded ground.<\/p>\n
In index futures trading, the key September contract on the Nikkei average ended up 150 points at 10,030 on the Osaka Securities Exchange.<\/p>\n","protected":false},"excerpt":{"rendered":"
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