TOKYO: Tokyo stocks surged 1.95 percent Friday to close at their highest level in six months, boosted by a weaker yen and hopes the US Federal Reserve will maintain its easy-money policy.
The benchmark Nikkei 225 index added 289.51 points to 15,165.92, the best finish since hitting a five-year high in late May, with analysts saying Tokyo was back in bull-market territory.
The Topix index of all first-section issues was up 1.68 percent, or 20.49 points, at 1,239.04.
On Friday, dealers said investor sentiment was boosted after US Federal Reserve chair nominee Janet Yellen suggested the bank would not start reeling in its stimulus programme until the economy was strong enough and unemployment was lower.
"The market scenery has changed," said Toshihiko Matsuno, strategist at SMBC Friend Securities.
"Ms Yellen suggested the easy-money policy would continue to prop up the economy, which is theoretically a negative factor for the dollar," he added.
But her comments boosted risk sentiment and pushed up stock prices, which prompted investors to jump back in the market, he said.
"Many market players moved for buy-backs," Matsuno said.
The Nikkei gained 7.7 percent, or more than 1,000 points, over the past five sessions, its best weekly showing this year.
"It wouldn't be a total misnomer to call the current rally a 'Yellen Rally'," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
In currency trading the dollar topped 100 yen for the first time since mid-September, changing hands at 100.12 yen in Tokyo late trade, against 100.00 yen in New York Thursday.
In share trading, exporters were higher with Sony up 3.35 percent at 1,846 yen and Canon up 1.89 percent at 3,230 yen.
Sony was also lifted by upbeat expectations for its new PlayStation 4 games console, which will go on sale in North America on Friday.
Financial stocks also rose after reporting robust earnings Thursday.
Mitsubishi UFJ Financial Group, Japan's biggest bank, rose 2.01 percent to 658 yen while rival Mizuho gained 1.86 percent to 218 yen.
Tokyo Electric Power climbed 1.45 percent to 556 yen after media reports that the operator of the crippled Fukushima nuclear power plant would get billions of dollars in fresh bank loans to help fund decommissioning the site and compensating victims. (AFP)
