TOKYO: Tokyo stocks closed 2.12 percent higher Thursday after Wall Street hit record highs and as the dollar strengthened, while data showed Japan's growth slowing in the third quarter but still beat forecasts.
The benchmark Nikkei 225 index rose 309.25 points to 14,876.41, while the Topix index of all first-section shares gained 1.19 percent, or 14.36 points, to 1,218.55.
Shortly before the opening bell, official data showed the world's third-largest economy expanded at annualised rate of 1.9 percent, a marked slowdown from the 3.8 percent rise in the previous three months but outpacing economists' forecasts.
"Overall, as the growth rate exceeded the market consensus, it is a positive and offers psychological support to the market," Junya Naruse, chief strategist at Daiwa Securities, told Dow Jones Newswires.
Sentiment also got a boost after US stocks Wednesday hit all-time highs following a strong earnings report from retail giant Macy's that raised hopes about the upcoming holiday shopping season.
In forex trade, the dollar rose to 99.70 yen from 99.14 yen in New York late Wednesday, giving a boost to shares of exporters who benefit from a weaker yen.
The dollar's gains come ahead of a Senate grilling later in the day of Janet Yellen, who has been nominated to succeed Ben Bernanke as head of the Federal Reserve.
In remarks prepared for the hearing on Thursday, Yellen, the current Fed vice chair, signalled her support for continuing the central bank's easy-money policies until the world's biggest economy shows signs of a firm recovery.
Yellen said unemployment at 7.3 percent remains too high and reflects an economy running "far short" of its potential.
In share trading, Mizuho Financial Group, which has been under fire for a loans-to-gangsters scandal, was up 0.94 percent at 214 yen, while Japan's biggest bank Mitsubishi UFJ added 1.57 percent at 645 yen.
Both lenders will announce their fiscal half-year earnings later Thursday.
Among major exporters, Toyota was up 0.47 percent to 6,310 yen while Sony added 2.29 percent to close at 1,786 yen. (AFP)
