Nikkei closes 1.73 pct higher on upbeat U.S. data, weak yen

19:09, August 05, 2010      

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Tokyo stocks rose Thursday as investors bought a broad range of shares as the yen retreated against the dollar following Wednesday's eight-month high, and optimistic U.S. economic data lifted the market mood, which had been soured by speculation the U.S. Federal Reserve may intervene in the country's currency.

The 225-issue Nikkei Stock Average gained 164.58 points, or 1. 73 percent, from Wednesday to 9,653.92, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 11.16 points, or 1.32 percent, to 857.09.

Brokers said that the Automatic Data Processing Inc.'s upbeat U. S. employment data and the Institute for Supply Management's better-than-expected service sector readings helped alleviate some of the concerns over the slowing of the U.S. economic recovery.

Analysts also said that although gains were capped as investors keenly eyed the key nonfarm payroll data due out on Friday, the dollar rebounding from an eight-month low against the yen yesterday to trade around the lower 86 yen level Thursday encouraged investors to buyback shares oversold on the previous day.

"The better-than-expected U.S. data gave some relief to investors and eased excessive pessimism about the outlook for the global economy," said one local asset manager.

"The primary factor in the previous day's decline was heightened concern over the prospects for the U.S. economy and the dollar's tumble against the yen. Today, such economic worries were eased and the foreign exchange rate also turned around," said a Tokyo-based equities manager.

Exporters advanced on short-covering following Wednesday's declines with Toyota Motor Corp. gaining 0.49 percent to 3,105 yen and Honda Motor Co. Ltd. advancing 2.63 percent to 2,853 yen.


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(Editor:燕勐)

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