Japan's Nikkei average hit a five-week closing high on Thursday, soaring past its 75-day moving average as the euro climbed on news that the International Monetary Fund is seeking to bolster its funds to stem the euro zone sovereign debt crisis. Major exporters recouped some of their recent losses as the euro climbed against the dollar and the yen.
TDK Corp jumped 4.6 percent, while Konica Minolta Holdings Inc advanced 1.5 percent and Canon Inc added 0.9 percent. Sources, present at an IMF board meeting on the issue on Tuesday, said it was seeking to raise up to $600 billion to meet potential financing needs but the plan faces roadblocks from the United States and other countries.
Market participants said, however, that the bounce was more likely than not to be short-lived as the IMF's plans lacked details. "So really, we can see the euro's move as temporary and the strength of the yen will continue to weigh on the market," said Yutaka Miura, senior technical analyst at Mizuho Securities. The benchmark Nikkei rose 1.1 percent to 8,639.68 and rose above its 75-day moving average near 8,569, while the broader Topix advanced 0.8 percent to 740.68.
Japan's securities and megabanks outperformed the broader market and ranked among the biggest gainers in Tokyo, helped by better-than-expected results from Goldman Sachs. Nomura Holdings, Japan's top brokerage, climbed 4.3 percent to its highest close in 10 weeks and ranked as the top percentage gainer on the Topix Core 30 index of blue chip firms.
Sumitomo Mitsui Financial Group gained 2.4 percent, Mizuho Financial Group added 1.9 percent and Mitsubishi UFJ Financial Group rose 1.5 percent. Trading volume ticked down from the previous session, with 2.13 billion shares changing hands on the main board, down from 2.36 billion shares on Wednesday. Market participants said prospects for Europe will become clearer at the Group of 20 deputy officials' meeting this week in Mexico.
Later on Thursday, Spain and France will also test investor appetite with debt auctions, while Bank of America, Morgan Stanley, Google, Microsoft Corp and Intel Corp announce quarterly earnings later in the day. The Nikkei has risen 2.2 percent so far this month, compared with an average gain of 1.4 percent for the month of January between 1972 and 2011.
Sharp gainers on Thursday included recently battered semiconductor-related shares, following a 5 percent overnight rally in the US semiconductor index. Advantest Corp jumped 7 percent, Tokyo Electron Ltd gained 3 percent, and Sumco Corp rallied 9.4 percent.