Roundup: Nikkei climbs to 15-yr high on hopes for domestic earnings, global economic outlook

The Nikkei stock index climbed 0.99 percent Monday to a 15-year high on the back of a solid performance on Wall Street at the end of last week and hopes for the domestic economy ahead of earnings season; as global markets continue to be underpinned by central banks' increasing moves towards monetary easing.

The Nikkei 225 index gained 194.14 points to finish at 19,754. 36, while the broader Topix index of all first-section shares added 0.74 percent, or 11.74 points, to end at 1,592.25.

Local analysts here said that stocks were likely to continue to gain ahead of earnings season here as a comparatively weak yen has allowed exporters to upwardly adjust their profit outlooks and, as a general trend, export-related issues gaining ground has a positive impact on the broader market.

"We're seeing a trend of higher earnings revisions. As more firms bolster returns to shareholders, the end-of-year dividends this fiscal year could be even higher than the market is expecting, " Dalton Capital Japan Inc's Fumio Matsumoto said.

The U.S. Federal Reserve suggesting that it would hold off on its plans to raise its interest rate at an earlier juncture, continued to underpin major bourses, brokers here also added, with the tech-heavy Nasdaq closing higher for a fifth straight day Friday at a 15-year high.

"There are deep-seated expectations that Japanese stocks are headed higher," said IwaiCosmo Securities Co.'s Toshikazu Horiuchi.

Despite the U.S. dollar changing hands at 119.89 yen, lower than the 120.11 yen level logged in New York and dropping from the 120.71 yen mark seen in Tokyo in early trade on Friday, exporters gained ground on hopes for strong earnings and have been buoyed by major bellwethers upping salaries following trade negotiations recently.

Top automaker Toyota Motor accelerated 1.7 percent to 8,741 yen, while Subaru maker Fuji Heavy Industries climbed 3.6 percent to close at 4,182 yen.

Consumer electronics maker Sharp also closed in positive territory, leaping 4.62 percent to 249 yen, following local media reports that one of Apple Inc.'s major supplies is in talks with Sharp about some form of debenture to help the embattled maker repair its tattered finances.

Nintendo was still in the spotlight Monday, climbing 3.58 percent to 18,485 yen, as investors continue to plough into the stock following its long-awaited decision to enter the highly- lucrative mobile game market in collaboration with DeNa.

Pharmaceutical firm Eisai Co. was another notable gainer, rocketing 21 percent to 8,748 yen, following the initial phase of its partner firm Biogen Idec Inc.'s tests on treating Alzheimer's disease showing some positive results.

Operator of the Tokyo Stock Exchange itself attracted buying Monday, advancing 3.2 percent to 3,670 yen, after announcing a robust profit forecast and an increased dividend outlook for its shareholders.

Trading volume on Monday dropped to 1.88 billion shares on the Tokyo Exchange's First Section, down from Friday's volume of 2.13 billion shares, with advancing issues outnumbering declining ones by 1,228 to 529. Endi