Markets

Japanese shares end 1.05 percent higher

TOKYO : Japanese shares ended 1.05 percent higher Monday on encouraging gross domestic product data and hopes that a ne

Published November 14, 2011 Updated November 14, 2011 06:50am

2 min

By Imad Uddin

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The Nikkei index at the Tokyo Stock Exchange added 89.23 points to 8,603.70. The Topix of all first section shares rose 0.92 percent or 6.72 points to 735.85.

The market pessimism eased over Europe's debt crisis as former EU commissioner Mario Monti was nominated to head a new Italian cabinet, fanning hopes that he will help the country implement key economic reforms.

Italy's Senate approved a round of austerity measures while Greece's new unity government was sworn in to ratify a crucial EU bailout. In Portugal, lawmakers gave preliminary approval to the government's 2012 austerity budget.

"Excessive pessimism about European conditions has temporarily subsided, but the situation does not yet allow us to be wildly optimistic," Yutaka Miura, a senior technical analyst at Mizuho Securities, told Dow Jones Newswires.

Yutaka Yoshii, a general manager at Mito Securities, said: "Nobody is trading on the premise that concerns in Europe have been eradicated."

Just before the opening bell, government data showed Japan's economy grew by an annualised 6.0 percent in the July-September quarter, the first gain since March's earthquake and tsunami disaster and the first growth in four quarters.

"While there are concerns of an economic slowdown across the globe, there is some temporary relief that Japan's July-September GDP is better than other developed economies," said Yoshinori Nagano, a senior strategist at Daiwa Asset Management.

"But uncertainty for the October-December period remains strong," he added.

Many economists have warned about Japan's outlook with the strong yen and the slowing global economy hurting exports.

Miura of Mizuho Securities said investors would watch a batch of US economic data due this week and further developments in Europe with the new governments in Greece and Italy vowing to rein in their nations' crippling debt.

Financials led the gains, with Nomura Holdings soaring 5.76 percent to 257 yen and Mitsubishi UFJ Financial Group adding 1.83 percent to 334 yen.

Sony added 1.40 percent to 1,373 yen following a $2.2 billion deal to buy EMI's music publishing operation.

Toyota Motor rose 1.18 percent to 2,483 yen.

The euro bought $1.3750 and 106.03 yen in Asian afternoon trade, up from $1.3739 and 105.97 yen in New York late Friday. The dollar was at 77.13 yen, nearly flat from 77.12 yen in New York.

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