Business @ AsiaOne

Japanese shares rise to two-week high

The benchmark Nikkei-225 index climbed 174.97 points to end at 9,958.44. -AFP

Tue, Jun 30, 2009
AFP

TOKYO - Japanese share prices rose 1.79 percent on Tuesday, finishing at a two-week high, as investors took their cue from overnight gains on Wall Street triggered by optimism over the economy.

The benchmark Nikkei-225 index climbed 174.97 points to end at 9,958.44. The broader Topix index of all first section shares advanced 14.44 points, or 1.58 percent, to 929.76.

Institutional investors bought on the last day of the fiscal first quarter, helping the Nikkei to top 10,000 points briefly before profit-taking emerged, dealers said.

"The Nikkei needs more reassuring economic indicators to stay above 10,000," Tachibana Securities operating officer Kenichi Hirano told Dow Jones Newswires.

Investors were waiting for a key survey of Japanese business confidence due to be released on Wednesday that is expected to show the first improvement in sentiment among big manufacturers in two and a half years.

But it may take more positive news to push stocks much higher, dealers said.

"In terms of fundamentals, there's no reason to keep buying stocks," said Nikko Cordial senior strategist Tsuyoshi Kawata.

Data released Tuesday painted a mixed picture of the health of the world's second largest economy.

The jobless rate rose to a more than five year high of 5.2 percent in May while consumer spending increased for the first time in 16 months.

Energy-related shares were boosted by a rise in oil prices. Inpex added 5.0 percent to 772,000 yen ($11,734) and Japan Petroleum surged 7.2 percent to 5,350 yen.

 
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