TOKYO: Tokyo shares rose 1.54 percent Wednesday, trailing overnight gains on Wall Street amid growing hopes that Europe would reach a deal to avoid a default by Greece.
The Nikkei-225 index was up 148.28 points to close at 9,797.26. The Topix index of all first-section issues added 1.66 percent or 13.77 points to 844.11.
Investors welcomed reports that progress was being made in talks to prevent a Greek default, while Greece's parliament prepared to vote later Wednesday on crucial austerity measures.
Optimism had driven global investors to push US shares across the board overnight, with the Dow Jones Industrial Average adding 1.21 percent to close at 12,188.69.
"The market has shaken off the pessimistic mood starting from last week," Kazuhiro Takahashi, general manager of investment strategy and research at Daiwa Securities, told Dow Jones Newswires.
Sentiment in Tokyo was also lifted by the stronger-than-expected 5.7-percent increase in Japanese production for May, signalling economic recovery following the March 11 disasters that plunged the nation into its worst post-war crisis.
It was the second biggest increase in production on record in Japan.
"While there are views that the optimism on Greece is slightly extreme, shares are also solid on improvement in Japan's economic fundamentals," Cosmo Securities strategist Toshikazu Horiuchi told Dow Jones Newswires.
Utility firms led gains, including Tokyo Electric Power (TEPCO), on relief over the rejection of anti-nuclear power proposals at a shareholder meeting.
TEPCO, the operator of crippled Fukushima Daiichi nuclear plant, jumped 2.84 percent to 325. Chubu Electric soared 4.00 percent to 1,533.
Exporters also added on continued weakness of the yen.
Canon added 2.13 percent to 3,820. Toyota rose 1.71 percent to 3,270. Sony rose 0.83 percent to 2,055.
Copyright AFP (Agence France-Presse), 2011
Comments
Comments are closed.