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Roundup: Nikkei gains 0.36 pct to 15-year closing high on solid export data, weak yen

Xinhua, February 19, 2015 Adjust font size:

The Nikkei stock index rose 0.36 percent Thursday to a 15-year closing high as investor sentiment was lifted by upbeat export data supporting beliefs the Japanese economy is recovering.

The Nikkei 225 index gained 65.62 points to close at 18,264.79, marking its highest finishing level since May 2000, while the broader Topix index of all first-section issues rose 0.83 percent, or 12.26 points, to end the day at 1,494.93.

Traders here said that the market mood was optimistic from the start, as data released just before the opening bell showed that exports surged in January, marking the fifth successive month of increase.

Annual exports in January, according to the Ministry of Finance, surged 17 percent year-on-year, increasing the most since late 2013. The ministry said the robust figures were owing to increasing shipments of vehicles to the United States and electronic components being shipped to Asian countries.

The increase in exports in the recording period contributed to cutting Japan's trade deficit by more than half, with economists suggesting that along with Q4 data released Monday showing the nation had emerged from recession, a weak yen, strong U.S. stocks and easing concerns about Greece's debt woes, investor confidence was returning as was their appetite to chase assets higher.

"We expect Japanese exports will continue to recover as the U.S. economy expands," wrote SMBC Nikko Securities in a note after the data was released.

That said, some analysts noted that a sustainable trade surplus would be dependent on Japan reducing its need to import fossil fuels.

"Export values and volumes both show signs of recovery, which bodes well for Japan's economy. However, it will probably be difficult for Japan to return to a sustainable trade surplus as long as the nation continues to rely on imported energy," Meiji Yasuda Life Insurance's Yuichi Kodama said.

Japan's megabanks found favor Thursday, with top-lender Mitsubishi UFJ climbing 3.6 percent to 770 yen and Sumitomo Mitsui Financial Group Inc. gaining 2.6 percent to 4,687 yen. Mizuho Financial Group Inc., for its part, rose 3.6 percent to close the day at 218 yen.

Robotics manufacturer Fanuc, was among Thursday's notable gainers, surging 16 percent to a record 23,010 yen, and consumer electronics maker Sony added 1.7 percent to 3,227 yen, after announcing its operating profit will reach 500 billion yen (about 4.2 billion U.S. dollars) in the year ending March 2018.

Travel related shares also found traction, as tourism figures to Japan charted an increase recently, and Central Japan Railway gained 2.6 percent to close at 22,385 yen, while Don Quixote Holdings, a budget retailer, jumped 3.1 percent to end the day at 8,730 yen.

Trading volume on Thursday dropped to 2.65 billion shares on the Tokyo Exchange's First Section, down from Wednesday's volume of 2.72 billion shares, with advancing issues outnumbering declining ones by 1,351 to 420. Endi