Growing optimism over prospects for the Japanese economy along with buying by foreign investors pushed Tokyo shares higher across the board Tuesday, sending the key Nikkei stock index to finish above the 13,000 line for the first time in more than four years.
The 225-issue Nikkei average surged 189.89 points, or 1.47 percent, to 13,148.57, ending above the 13,000 line for the first time since June 22, 2001.
The Topix index of all first section issues on the Tokyo Stock Exchange gained 23.69 points, or 1.78 percent, to 1,352.53, its highest closing since May 29, 2001.
Despite falling equities and surging crude oil futures in New York overnight, Tokyo shares advanced from the outset, with sentiment brightened by continued preopening net-buying orders placed by foreign brokerages, brokers said.
Tokyo shares’ gains mostly widened throughout the day.
“Basically, expectations over domestic economic recovery and a pickup in the speed of structural reforms under (Prime Minister Junichiro) Koizumi’s administration are supporting stocks,” said Yutaka Miura, deputy head of the equity information division at Shinko Securities Co.
“The market has become impervious to negative news,” said Norihiro Fujito, senior investment strategist at Mitsubishi Securities Co., adding it was reacting to positive trading incentives, including signs of improvements in Japanese corporate earnings.
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