Tokyo stocks close sharply higher on U.S. jobs data, post-election stimulus plans

Tokyo stocks surged Monday, with the key Nikkei benchmark stock index touching above the 4 percent mark at one point, as solid U.S. jobs data released at the end of last week in twine with a resounding victory and promises of more stimulus measures from Japan's ruling government camp, sent investors after a swathe of issues.

The 225-issue Nikkei Stock Average surged 601.84 points, or 3.98 percent, from Friday to end the day at 15,708.82, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange jumped 45.91 points, or 3.79 percent, to finish at 1,255.79.

Local brokers said the market was fundamentally underpinned by optimism brought on by the U.S. economy creating 287,000 jobs in June, as the market bounced back from logging disappointing growth in the job sector a month earlier.

The number of jobs created came in ahead of median economists' forecasts and sent the U.S. dollar higher against the yen, which is a boon to the market here and particularly exporters who rely on a weaker local currency to augment their overseas profits and boost their overall competitiveness.

Traders here were also encouraged by a rise in the number of people as revealed in a separate report, stating they were actively looking for work, which reflects confidence in the economy, despite the actual unemployment figure rising 0.2 percent to 4.9 percent in June from a month earlier.

Japanese traders said they were hopeful that a continuation of positive economic data from the U.S. would lead to the U.S. Federal Reserve rethinking a halt to its rate hike, in a sign the world's largest economy is on a sustainable recovery path.

Also supporting an upbeat market mood on the first trading day of the week was an upper house election held on Sunday that saw the ruling Liberal Democratic Party-led camp achieve a landslide win and maintain its grip on power in the upper chamber.

Analysts here said hopes the government will now make good on their campaign pledges and unroll more stimulus measures to reboot the economy and better chase the central bank's 2 percent inflation target were high and underscored by Prime Minister Shinzo Abe stating Monday more stimulus measures would be introduced.

"We will implement comprehensive and bold stimulus measures to firmly bolster domestic demand," Abe, also chief of the LDP told a press briefing Monday, adding that boosting both agriculture and tourism would be key focal points for growth.

Miscellaneous product, iron and steel, and securities-linked issues were among notable issues that advanced, although all industry categories on the main section closed in positive territory by the end of play.

The day's turnover was 2,129.1 billion yen (20.90 billion U.S. dollars). Endit