Roundup: Nikkei climbs to 7-year closing high as GDP data signals end of recession

The Nikkei stock index climbed 0.51 percent Monday to close at more than a seven-year high as investor sentiment was lifted following GDP data showing that Japan had emerged from recession in the last quarter of 2014.

The Nikkei 225 index added 91.41 points to end the day at 18, 004.77, marking its highest close since July 2007, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 10.05 points, or 0.69 percent, higher at 1,459.43.

Trading got off to a positive start, brokers here said, following strong leads from both U.S. and European markets, with the S&P 500 and the DAX in Germany peaking at record highs last week, aided by the solid growth figure in the euro-zone allaying some fears about Greece's debt woes.

But the biggest motivator for buying Monday, was domestic economic growth data showing Japan exited recession in the last quarter of 2014.

Data released just before the morning bell showed that Japan's economy grew an annualized 2.2 percent in the final quarter of last year, although the figure came in somewhat lower than median economists' expectations of a 3.7 percent increase and showed that consumption still remained low.

But despite consumption still being an issue following the Aril tax hike last year, economists here said the worst of the fallout from the tax increase has been seen, as evidenced by the Bank of Japan holding off on further expanding its monetary stimulus program in the coming months.

"Even though it missed estimates, the figures are positive which means at least the direction of the recovery is right. I would say the data today is mixed. People haven't completely lost hope on growth," noted Ayako Sera, a strategist at Sumitomo Mitsui Trust Bank.

Gains were capped in later trade, however, as some investors hit the sidelines to await the outcome of a meeting of eurozone leaders scheduled for later in the day, regarding possible concessions being made to Greece's debt obligations.

In currency markets, the U.S. dollar was changing hands at 118. 46 yen, compared to 118.74 yen logged in New York on Friday.

Among financial issues, top lender Mitsubishi UFJ Financial Group Inc. advanced 3.1 percent to 729 yen, while brokerage Nomura Holdings Inc. added 2.4 percent to close at 680 yen.

Oil exploration giant Inpex closed in positive territory, closing up 3 percent to 1,441 yen, following a rise in crude oil prices.

Yokohama Rubber jumped 5.5 percent to 1,114 yen, but embattled auto parts maker Takata slumped 5.37 percent to 1,321 yen, following Honda, its biggest client, rejecting to provide the ailing firm with a capital injection.

Trading volume on Monday fell to 2.46 billion shares on the Tokyo Exchange's First Section, down from Friday's volume of 2.56 billion shares, with advancing issues outnumbering declining ones by 1,188 to 563. Endi