TOKYO: Tokyo's key stock index on Thursday chalked up its best close this year, tracking Wall Street's surge to another fresh record high and as investors eye a key European Central Bank meeting.
The Nikkei 225 rose 1.45 percent, or 268.78 points, to end at 18,765.47, while the broader Topix index of all first-section issues gained 1.48 percent, or 22.07 points, to 1,512.69.
Shortly before the opening bell, the government said the world's number three economy expanded 0.3 percent on-quarter in July-September, weaker than a 0.5 percent initial estimate.
But investors largely ignored the disappointing data, taking a lead from overseas, with the Dow surging to a record for the third straight session, and marking the best day for Wall Street since the November 8 US election.
The rally has been sparked by hopes President-elect Donald Trump and the Republican-led Congress will enact policies that fuel stronger growth and loosen regulation in the world's biggest economy.
The European Central Bank (ECB) is widely expected to prolong massive monetary stimulus Thursday to spur an economy crimped by a rise in political uncertainty as exemplified by Trump's upset win, Brexit and the rise of the far right in Europe.
"There is a real risk of unpleasantness in European bond, equity and currency markets if (ECB chief Mario) Draghi doesn't at least meet expectations," Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, told Bloomberg News.
"The market is optimistic that the ECB will extend its quantitative easing program at current levels for a further six months."
Tokyo Electric Power surged 17.50 percent to 537 yen following news reports that the government plans to expand its line of interest-free credit as the firm pays for the swelling cleanup and compensation costs of the 2011 Fukushima nuclear crisis.
SoftBank shares roared again following Trump's announcement of a $50 billion investment in the US by the telecoms giant.
The firm jumped 5.48 percent to 7,792 yen a day after jumping more than six percent, with investors hailing CEO Masayoshi Son's meeting with Trump in New York.
The announcement that a Honda joint venture in China plans to build a third production plant in the country boosted the Japanese automaker's shares 1.83 percent to 3,437 yen.
Sony was up 1.93 percent at 3,261 yen after it announced plans to release new smartphone games into the Japanese market in April.
Mitsubishi Heavy Industries jumped 2.64 percent to 563.4 yen on local reports the Japanese machinery maker is considering investing in French nuclear giant Areva.
On currency markets, the dollar edged down to 113.55 yen, from 113.74 yen in New York.
Comments
Comments are closed for this article.