TOKYO: Japanese shares gained 0.61 percent on Wednesday after oil prices fell back and stronger than expected economic data provided a note of optimism, dealers said. The Nikkei index of the Tokyo Stock Exchange rose 64.31 points to 10,589.50. The Topix index of all first section shares grew 0.55 percent, or 5.13 points, to 944.29.
Financial markets have been shaken by worries that the rising cost of crude oil will undermine global growth, so falling prices tend to prompt a positive stock market reaction, dealers said. "We will continue to see the Nikkei and the Dow reacting to the slightest changes in crude price for the foreseeable future," Kenichi Hirano, operating officer at Tachibana Securities, told Dow Jones Newswires.
New York crude fell below $105 in Asia Wednesday as OPEC members showed signs of increasing output to counter the effects of turmoil in the Middle East and North Africa, analysts said.
New York's main contract, light sweet crude for delivery in April, shed 39 cents to $104.63 per barrel.
Brent North Sea crude for April delivery fell 36 cents to $112.70.
Saudi Arabia's assurances Tuesday that it would counter any disruptions of the global oil market pushed crude prices down, but Libya's ongoing turmoil capped gains.
In Japan, sentiment was boosted by stronger-than-expected machinery orders, which rose 4.2 percent in January on increasing overseas demand. Machinery maker Fanuc, a heavy-weight contributor to the Nikkei Stock Average, rose 0.54 percent to 12,880 yen following the better-than-expected data. A major 7.3-magnitude offshore earthquake that rattled Japan over the lunchtime break had little impact on the stock market, dealers said.
Dainippon Screen Manufacturing was up 4.61 percent 839, and Yaskawa Electric gained 2.58 percent to 994 after Nikkei Inc. said Tuesday shares of the trio would be added to the Nikkei 225 Stock Average on March 29, citing their high liquidity.
Toyota was up 0.40 percent at 3,715 on softer crude prices and a weaker yen, with investor attention focused on the firm's "global vision" long-term business plan that the automaker plans to unveil later Wednesday. According to a Nikkei report, Toyota aims to lift its group operating profit to more than one trillion yen ($12 billion) in two to three years by strengthening its ability to cope with a stronger yen and through additional cost cuts.
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