TOKYO: Japanese shares surged 1.93 percent Thursday morning as positive US data and hopes for progress in strengthen the eurozone's banking systems eased investors' worries.
The Nikkei index at the Tokyo Stock Exchange added 161.70 points to 8,544.68 by the break. The Topix of all first section shares rose 1.89 percent or 13.75 points to 740.00.
The Nikkei became buoyant after a rise in crude and precious metal prices overnight, while European markets staged strong gains on expectations European leaders will support their banks to prevent the eurozone debt crisis from spreading.
Germany called on its EU partners to recapitalise the banking sector.
And in the United States the ISM index on the US service economy in September fell slightly to 53 from 53.3 the previous month, but was still in growth territory, while its business activity sub-index rose 1.5 points to 57.1.
Meanwhile the private payrolls firm ADP reported that US companies added 91,000 jobs last month, more than analysts had predicted.
"In addition to talks of putting in place a system of backstops for European banks, US macroeconomic data have generally been solid, leading to an improvement in market sentiment," said Yoshihiro Okumura, general manager of research at Chibagin Asset Management.
Exporters benefited from the bright news.
Sony jumped 4.27 percent and Toyota Motor rose 1.79 percent.
A rise in oil and commodity prices boosted Japanese trading houses. Mitsui & Co. added 3.31 percent, while Mitsubishi Corp. jumped 3.79 percent.
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