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Roundup: Nikkei gains 1.67 pct on hopes for ECB easing, solid U.S. jobs data

Xinhua, January 8, 2015 Adjust font size:

The Nikkei stock index gained 1.67 percent on Thursday as U.S. jobs data added to hopes the world's largest economy is on a sustainable recovery track and boosted equities there, while hopes the European Central Bank (ECB) will unroll quantitative easing measures forthwith also lifted investor sentiment.

The Nikkei 225 gained 281.77 points to finish at 17,167.10, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 17.87 points, or 1.31 percent, to close at 1,377.67.

Tokyo-based brokers said that the ECB may ease its rates ahead of Greece's general election on Jan. 25 that could see the opposition party swing to power on a platform, which, in part, calls for Greece to leave the singe currency union in Europe as part of new austerity measures.

"The ECB may or may not ease at its Jan. 22 meeting, especially since the Greek election is just a few days behind, but President Mario Draghi will at least hint at quantitative easing at a post- meeting press conference. Either way, QE appears just a matter of time," said Ayako Terada of Nomura Securities Co.'s investment research department.

Adding to improved investor sentiment, traders also noted that data from the ADP Research Institute showed that U.S. companies added 241,000 workers in December, ahead of media economists' predictions for 225,000, as the official government payroll data due out tomorrow is being keenly eyed.

Analysts here also said that a halt in crude oil's drop also gave the market some respite, although they maintained that oil had likely not completed its fall and the bounce back was merely temporary.

With the yen falling against both the U.S. dollar and euro, exporter issues reliant on a weaker yen to boost profits made overseas as well as their overall competitiveness in foreign markets, found traction on Thursday.

Panasonic added 1.7 percent to close at 1,387 yen, while Toyota accelerated 2 percent to finish at 7,554 yen.

Fuji Heavy Industries rose 2 percent to 4,276 yen and computer and auto parts maker Nidec Corp. gained 2.4 percent to close the day at 7,868 yen.

Game console maker Nintendo was also in the spotlight Thursday, adding 2.3 percent to 12,135 yen, following the company saying it would collaborate with GungHo to bring the latter's "Puzzle & Dragons" game to Nintendo's 3DS handheld console.

Japan Tobacco also closed in positive territory, climbing 1.4 percent to 3,150 yen, following the Children's Investment Fund recommending Japan's top-cigarette maker launch a sizable share buyback plan to the tune of 1.3 billion U.S. dollars, as well as offer a 150 yen end of year dividend.

High street shoe store ABC-Mart also found favor, adding 2.2 percent to finish at 5,700 yen, after the firm announced a record net profit in the nine months through November.

Trading volume on Thursday rose to 2.47 billion shares on the Tokyo Exchange's First Section, up from Wednesday's volume of 2.20 billion shares, with advancing issues outnumbering declining ones by 1,445 to 296. Endi