Tokyo shares up 1.05pc by noon

TOKYO: Tokyo shares rose 1.05 percent Monday morning after positive US manufacturing data presented investors with an optimistic snapshot of the world's largest economy, brokers said.

The headline Nikkei-225 index at the Tokyo Stock Exchange soared 103.52 points to 9,971.59. The Topix index of all first-section issues added 1.12 percent, or 9.55 points, to 863.41.

Markets in the United States received a boost from the release of the ISM purchasing managers index for the manufacturing sector for June, which climbed 1.8 percent from May, much better than economists had forecast.

"Sentiment has not turned immediately bullish, but it seems the recent US slowdown was a result of temporary factors such as disruptions in Japan's supply chain and higher gasoline prices," Cosmo Securities strategist Toshikazu Horiuchi told Dow Jones Newswires.

Progress in tackling Greece's debt also supported the market after eurozone finance ministers cleared the way Saturday for Athens to receive urgent funds to avoid imminent bankruptcy, brokers said.

Greece is expected to receive 12 billion euros from the eurozone and IMF by July 15 after the ministers approved the fifth tranche of aid from last year's 110-billion-euro ($160 billion) financial rescue package.

US stocks jumped sharply higher on Friday, closing out the best week in two years and starting the second half on a positive note.

In thin trade before the long July 4 holiday weekend, the Dow Jones Industrial Average leaped 168.43 points (1.36 percent) to 12,582.77.

Trading volume is also likely to be light in the Tokyo market with US markets closed Monday for Independence Day, said Kazuhiro Takahashi, general manager of investment strategy and research at Daiwa Securities.

Toyota climbed 1.64 percent to 3,390 yen, and Honda surged 3.05 percent to 3,205 yen.

Banks also posted robust gains, with Mitsubishi UFJ Financial Group up 2.26 percent at 407 yen and Mizuho Financial up 2.25 percent at 136 yen.

Copyright AFP (Agence France-Presse), 2011