Roundup: Nikkei jumps 1.39 pct on eased fears over Fed rake hike, weak yen

The Nikkei stock index jumped 1.39 percent Friday to a near 15-year closing high, as a weak yen urged investors to increase positions ahead of the weekend and data from the U.S. was deemed to be a sign that the U.S. Federal Reserve will not hike its rate as early as previously expected.

The Nikkei 225 index gained 263.14 points, to close at 19,254. 25, marking its highest closing level since April 2000, while the broader Topix index of all first-section issues added 0.89 percent, or 13.70 points, to finish at 1,560.33.

According to local traders, the market was being supported by Wall Street's upbeat close overnight, following data from the U.S. Commerce Department showing that retail sales in the world's largest economy had fallen for a third straight month in February.

Economists here said that the data was being interpreted as providing the Fed with more reasons to hold off on its plans to hike its interest rate, a move that will show the U.S. economy is in good enough health to withstand the increase, but at the same time will affect global financial markets.

"The U.S. economy is resilient, but we have to scrutinize very carefully whether it's strong enough to withstand higher interest rates. Tightening too quickly will impact financial markets, which will ripple through to the actual economy. The central bank won't be able to exit easing as quickly as the market is forecasting," said Mitsuo Shimizu, deputy general manager at Japan Asia Securities Group Ltd.

The yen's continued weakness against the U.S. dollar continued to underpin the market Friday, local traders said, with some exporter issues benefiting form their firm's increased competitiveness and boosted profits when repatriated from overseas markets.

In currency markets, the U.S. dollar was changing hands at 121. 45 yen, compared to 121.29 yen logged in New York.

Automakers mainly closed in positive territory, with Mazda Motor accelerating 2.7 percent to 2,454 yen and Nissan Motor advancing 2.1 percent to finish at 1,299 yen. Top maker Toyota closed lower, however, edging down 0.01 percent to end at 8,257.

The market's heavily weighted issues faired well on the last trading day of the week, with Uniqlo operator Fast Retailing rising 1.7 percent to 46,275 yen, following JP Morgan raising its rating on the firm's stock from "neutral" to "overweight" and increasing its target price on the stock from 42,000 yen to 51,500 yen.

Industrial robotics maker Fanuc, meanwhile, soared 13.2 percent to 26,870 yen, following media reports that the firm will establish more talks with its shareholders about a potential buyback plan.

But Pharmaceutical companies lost ground on profit-taking following the sector's recent gains and Eisai stumbled 5.3 percent to 7,151 yen, while Ono Pharmaceutical Co. slumped 2.1 percent to close at 13,790 yen.

Real estate issues also gained traction, with Mitsui Fudosan leaping 3.9 percent to 3,524 yen, while Sumitomo Realty & Development Co. jumped 5.6 percent to close the week at 4,340 yen.

Trading volume on Friday jumped to 3.19 billion shares on the Tokyo Exchange's First Section, up from Thursday's volume of 2.18 billion shares, with advancing issues outnumbering declining ones by 1,126 to 602. Endi