Japan's Nikkei stock average rose more than 2 per cent today to its highest close in nearly four months, buoyed by exporters such as Advantest Corp on a softer yen and a rally on Wall Street amid growing optimism about the US economy.
Property firm Sumitomo Realty & Development Co shot up more than 7 per cent after a newspaper reported its
profits were likely to beat forecasts. Other real estate stocks also rose on the back of strong earnings, helped by demand for office space in Tokyo.
Bank shares tracked gains in their US peers due to improved investor confidence a day after the Federal Reserve trimmed rates again and hinted at a pause in its recent campaign to lower borrowing costs.
On the negative side, Japan Tobacco slid 4.1 per cent to 490,000 yen after the world's third-largest cigarette maker forecast a 28 per cent fall in profit this year due to an accounting change, its first drop in eight years.
The Nikkei average climbed 2.1 per cent or 282.40 points to end at 14,049.26, its highest close since January 11th. In April, the benchmark gained 10.6 percent, the biggest monthly percentage gain since July 1995, when it jumped 14.9 per cent.
The broader TOPIX index added 2.3 percent or 31.29 points to 1,377.39. Yusuke Sakai, manager of equities trading at Mizuho Securities, said the support line for the Nikkei looks to have risen to around 14,000 from the range between 13,500 and 14,000.
"The market has begun to see the 13,000 level as fairly cheap now," he said. The three US major indexes closed at the highest level yesterday since the first half of January as equities extended a rally started in mid-March on optimism that credit markets and the economy have begun to stabilise.
Traders will scrutinise the US labour Department's April employment report for more clues on how the US economy is faring. Economists expect nonfarm payrolls to have shed 80,000 jobs, in line with losses in the three
previous months.
After a one-day break on Tuesday, Japanese markets will be shut again next Monday and Tuesday for national
holidays.