Japan's Nikkei average rose 1.8 per cent to hit a 2.5-month closing high on Thursday as exporters such as Sony gained after unexpectedly strong US economic data sparked hopes for an economic recovery.
Elpida Memory soared 18 per cent to 657 yen after it said it would raise 46 billion yen ($470.6 million), aiming to shore up its balance sheet and avoid breaching debt covenants.
Adding to the market's bullish tone, a US senior lawmaker said yesterday that an Obama administration task force is likely to recommend more aid for struggling U.S. automakers.
The benchmark Nikkei ended up 156.34 points at 8,636.33, its highest close since January 9th. The Nikkei has jumped nearly 1,600 points or over 22 per cent from a 26-year closing low hit near 7,000 on March 10th.
The broader Topix gained 1 per cent to 826.81.
The Dow Jones industrial average gained 1.2 per cent yesterday as unexpectedly strong housing and durable goods data fuelled hopes the economy is finally on the mend.
US new home sales rose at their fastest pace in 10 months in February, adding to recent data showing signs of hope in the battered housing sector.
Fuji Electric Holdings rose after the Nikkei business daily said today that Fuji and TDKplanned to merge their uninterruptible power supply operations in October, forming a venture larger than the UPS operations of current market leader Mitsubishi Electric Corp.
Fuji Electric advanced 6 per cent to 124 yen, while TDK was up 0.5 per cent at 3,990 yen.
Banks rose, with Mitsubishi UFJ Financial Group, Japan's top lender, gaining 1.5 per cent to 540 yen and Sumitomo Mitsui Financial Group advancing 2.1 per cent to 3,960 yen.
But drugmakers Takeda Pharmaceutical Co lost 3.5 per cent to 3,640 yen and Eisai Co sank 2.9 per cent to 3,040 yen.
Among stocks considered to have stable dividend yields, Tokyo Electric Power fell 1.3 per cent to 2,585 yen, after gaining the previous day.
Credit Saison soared 7.8 per cent to 970 yen after the consumer lender unveiled a plan to restructure its affiliate Atrium, an ailing real estate developer.
Atrium plunged 23 per cent to 133 yen as Credit Saison said it would make Atrium a subsidiary, exchanging 0.13 Credit Saison share for one Atrium share.
Reuters