Tokyo stocks at six-week high

TOKYO: Tokyo's Nikkei index rose to a six-week high on Monday, lifted by firm Asian markets amid hopes for European action to resolve the sovereign debt crisis after a weekend meeting of G20 finance ministers.

The benchmark Nikkei index at the Tokyo Stock Exchange gained 131.64 points, or 1.50 percent, to 8,879.60. The Topix index of all first-section issues added 1.75 percent, or 13.07 points, to 761.88.

Other Asian markets supported the Nikkei, with markets in Hong Kong, Shanghai and Seoul all posting gains on Monday. The relatively weaker yen versus the euro and dollar also helped lift the mood.

Risk sentiment improved after the weekend G-20 meeting "established the direction" of how to deal with the eurozone debt crisis and its impact on the banking system, said Yoshihiro Okumura, general manager at Chibagin Asset Management.

Europe on Saturday vowed to its partners from the Group of 20 top economies that it would take swift and decisive action to resolve a debt crisis that is threatening to drag the world economy back into recession.

Speaking after a meeting of G20 finance ministers and central bankers in Paris, French Finance Minister Francois Baroin said the eurozone would present answers as soon as next weekend, at a summit of EU leaders in Brussels.

"The results of the October 23 summit will be decisive," Baroin said. "We are acting resolutely to maintain financial stability."

Hiroichi Nishi, general manager at SMBC Nikko Securities, said: "It's psychologically reassuring that excessive concerns have subsided about a global recession being triggered by the European problems."

However Cosmo Securities equity strategist Toshikazu Horiuchi said: "Since nothing concrete (on the European debt crisis) was decided at the G-20 meeting, it should constitute a selling incentive."

"But there is a continuing optimism for a policy response from Europe later this week," Horiuchi added.

The market was also supported by easing worries about the US economy after data released Friday showed the nation's retail sales advanced 1.1 percent in September from August, their strongest pace in seven months.

Olympus plunged 23.96 percent to 1,555 yen after the abrupt ouster of its first non-Japanese CEO on Friday.

The camera and other precision equipment maker briefly suffered the maximum daily loss of 500 yen to hit 1,545 yen, marking the lowest level since May 2009.

A relatively weaker yen gave a lift to exporters, with Toyota rising 2.85 percent to 2,629 yen and Sony up 4.96 percent at 1,607 yen.

The euro was at 106.94 yen in Tokyo trade, compared to 107.17 yen in New York late Friday and 106.01 yen in Tokyo on Friday.

The dollar fetched 77.13 yen, against 77.21 yen in New York and 76.94 yen in Tokyo on Friday.

US stocks climbed Friday on Google's robust third-quarter earnings and buoyant US retail sales data, with the Dow Jones Industrial Average capping a strong week with a jump of 166.36 points (1.45 percent) to 11,644.49.

Copyright AFP (Agence France-Presse), 2011