TOKYO: Japanese shares rose 1.91 percent by the break on Wednesday, buoyed by the Dow in New York hitting its highest level in two and a half years as well as receding concerns over unrest in Egypt, brokers said.
The Nikkei index at the Tokyo Stock Exchange gained 196.00 points to 10,470.50 in the morning session while the Topix index of all first-section shares rose 1.89 percent or 17.26 points to 930.78.Analysts said the Nikkei gained on strong US manufacturing data and easing concerns in the Middle East after Egyptian President Hosni Mubarak announced that he would not run in the upcoming presidential election.
Tsuyoshi Segawa, equity strategist at Mizuho Securities, said "the trend to avert risky assets has reversed, sparking the flow of cash into equity markets."TDK was up 3.95 percent at 5,780 yen while Toyota soared 3.41 percent to 3,485 and Honda added 1.69 percent to 3,605.
Major US market indices were higher, buoyed by indications the US economy is moving steadily away from its recession trough: strong January car sales, better-than-expected manufacturing growth and solid earnings reports from Pfizer, UPS, and Archer Daniels Midland (ADM).
The Dow on Wall Street surged 1.25 percent to 12,040.16 points, its first close above 12,000 since June 19, 2008.There were also strong gains for the broader S&P 500 index, which ended up 1.67 percent and the tech-heavy Nasdaq, which closed 1.89 percent higher.
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