TOKYO: Tokyo's Nikkei 225 jumped 1.80 percent to its best close in almost six years Thursday as a weaker yen and record finishes on Wall Street helped propel the benchmark index to new highs.
The Nikkei finished up 277.49 points to 15,727.12, its highest close since mid-December 2007, while the broader Topix index of all first-section shares added 1.12 percent, or 13.96 points, to 1,261.04.
The multi-year high comes after US stocks Wednesday rose to fresh records following a stream of mixed economic data on the eve of the Thanksgiving holiday.
Kenzaburo Suwa, strategist with Okasan Securities, chalked up Tokyo's rise Thursday to buoyant market sentiment, with foreign investment pouring into Japan's premier exchange.
"There has been risk-taking momentum due to several positive factors, including the yen's decline below 102 against the dollar," he told AFP.
"The market appears overheated and profit-taking is likely to emerge, but current buying sentiment is strong enough to digest it for the moment.
"It would not be a surprise to see the Nikkei top 16,000."
The long-forgotten Japanese market has surged over the past year on the back of an economic policy blitz unleashed by Japanese Prime Minister Shinzo Abe, dubbed Abenomics.
The Nikkei soared over 50 percent since January, making it one of the best-performing bourses globally, after the Bank of Japan unleashed a massive stimulus drive which has helped stoke renewed optimism in the world's third-largest economy.
The Nikkei previously hit a more than five-year high on May 22 as it blew past levels seen before the 2008 collapse of Lehman Brothers that heralded the beginning of the global financial crisis.
But the next day it plunged more than 7.0 percent in the biggest one-day daily fall since March 15, 2011, in the wake of a huge earthquake-tsunami and Japan's subsequent nuclear crisis.
The index has been on the march again in recent months, boosted by a further decline in the yen which helps Japanese exporters like Toyota and Sony by making them more competitive overseas and inflating repatriated foreign earnings.
The dollar surged to a six-month high above 102 yen Wednesday after comments from a Bank of Japan official who hinted there was a potential for more monetary easing.
BoJ board member Sayuri Shirai said the central bank "should not hesitate" to take additional steps if needed.
The plan, unveiled in April, injects vast sums of money into the financial system, similar to the US Federal Reserve's quantitative easing scheme, which has helped push down the yen.
On Thursday afternoon, the dollar was at 102.13 yen, about 25 percent higher than late last year.
Since January, many well-known Japanese firms have seen big gains, with Toyota shares up about 60 percent to close at 6,390 yen Thursday while Sony stock has nearly doubled to 1,865 yen.
Uniqlo clothing chain operator Fast Retailing surged about 78 percent to 38,950 yen since January.
On Wednesday, US weekly jobless claims data came in better than forecast, while durable goods orders were down 2.0 percent in October, when Washington was paralysed by a 16-day government shutdown.
Investor response was upbeat with the Dow tacking on 0.15 percent to 16,097.33, a fresh record high while the broad-based S&P 500 also hit a fresh record, adding 0.25 percent to 1,807.23. (AFP)
