Japanese shares closed at a 21-month high on Friday as investors returned to blue-chip stocks because of growing optimism over the economy after the dollar's climb to a four-month high versus the yen, which helps exporters.
Toyota Motor Corp., the world's number-two auto maker, and consumer electronics giant Sony Corp. were bought in active trade after both had lagged banks and other domestic-demand issues recently.
The benchmark Nikkei average finished up 1.19 percent at 11,537.29, its highest close since June 6, 2002.
The TOPIX index of all first-section issues ended up 0.92 percent at 1,131.01, also a 21-month high.
The Nikkei was up 4.49 percent on the week, its best showing since the week to August 15, 2003, when it rose 5.75 percent, but some analysts remained wary, especially ahead of U.S. jobs data later in the day that had the potential to upset Wall Street.
"Foreigners have been buying Japanese shares as they are laggards in the global markets," said Koji Muneoka, head of domestic sales trading at HSBC Securities.
"So their appetite could be dampened if the New York market and the dollar are not favorable."
One fund manager also said the Tokyo market had risen too fast.
"The market will basically stay in a rising trend. But the Nikkei's 11,500 level should be watched carefully (as sellers may be lining up to lock in profits)," said Tetsuo Inoue, chief strategist at UAM Japan Inc. Inoue expected the Nikkei average to peak at 12,000-12,500 around mid-May.
Hiroyuki Nakai, chief strategist at Tokai Tokyo Securities, said investors were betting on the momentum carrying into next week "and bought laggards today -- the bluest of Japan's blue-chip issues, namely the electronics sector and the core 30 large-cap issues."
Large-cap issues far outperformed the overall market as the TOPIX Core 30 Index gained 1.45 percent.
The Nikkei has risen in seven of the past eight sessions, in which it has rallied more than eight percent, bolstered by data confirming a recovery in the Japanese economy.
Sentiment toward domestic-demand stocks improved further earlier this week after a company source said Mizuho Financial Group Inc would this month return nearly 600 billion yen ($5.4 billion) in public funds borrowed under a recapitalization program.
TOYOTA DRIVES HIGHER
Gainers outnumbered decliners 847 to 557 on Friday on the Tokyo bourse's first section.
Volume remained high, with foreign investors keeping up their buying. A total 1.807 billion shares changed hands on the first section, slightly down from Thursday's 2.112 billion, which was the highest since July 3, 2002.
Toyota climbed 2.35 percent to 3,920 yen, a two-year closing high, helped by the firmer dollar, which boost exporters' overseas profits when repatriated. Rival Honda Motor Co jumped 3.89 percent to 5,070 yen.
Sony was up 3.33 percent at 4,660 yen, its highest close since February last year, and Canon Inc, Japan's biggest office equipment maker, rose 2.76 percent to 5,580 yen.
Investors also bought insurance firms and wholesalers on hopes that Japan's recovery would finally filter through to the domestic sector.
But banks and real estate firms, which have recently enjoyed handsome gains on the belief that Japan would solve its bad loan problems sooner than feared by some, attracted profit-taking, which curbed buying in the market in general.
Mizuho Financial Group, Japan's biggest banking group by assets and the most active issue by value, finished the day up 0.54 percent at 369,000 yen after hitting a record high of 377,000 yen soon after the opening.
Rival Mitsubishi Tokyo Financial Group was up 0.77 percent at 918,000 yen.
Another notable gainer was Kanebo Ltd., cheered by media reports that a state body that helps restructure ailing firms, the Industrial Revitalization Corp of Japan (IRCJ), was studying a plan to extend financial assistance not only to its cosmetics business but to other operations as well.
Shares in Kanebo soared 11.71 percent to 124 yen.
Toyota Motor Corp., the world's number-two auto maker, and consumer electronics giant Sony Corp. were bought in active trade after both had lagged banks and other domestic-demand issues recently.
The benchmark Nikkei average finished up 1.19 percent at 11,537.29, its highest close since June 6, 2002.
The TOPIX index of all first-section issues ended up 0.92 percent at 1,131.01, also a 21-month high.
The Nikkei was up 4.49 percent on the week, its best showing since the week to August 15, 2003, when it rose 5.75 percent, but some analysts remained wary, especially ahead of U.S. jobs data later in the day that had the potential to upset Wall Street.
"Foreigners have been buying Japanese shares as they are laggards in the global markets," said Koji Muneoka, head of domestic sales trading at HSBC Securities.
"So their appetite could be dampened if the New York market and the dollar are not favorable."
One fund manager also said the Tokyo market had risen too fast.
"The market will basically stay in a rising trend. But the Nikkei's 11,500 level should be watched carefully (as sellers may be lining up to lock in profits)," said Tetsuo Inoue, chief strategist at UAM Japan Inc. Inoue expected the Nikkei average to peak at 12,000-12,500 around mid-May.
Hiroyuki Nakai, chief strategist at Tokai Tokyo Securities, said investors were betting on the momentum carrying into next week "and bought laggards today -- the bluest of Japan's blue-chip issues, namely the electronics sector and the core 30 large-cap issues."
Large-cap issues far outperformed the overall market as the TOPIX Core 30 Index gained 1.45 percent.
The Nikkei has risen in seven of the past eight sessions, in which it has rallied more than eight percent, bolstered by data confirming a recovery in the Japanese economy.
Sentiment toward domestic-demand stocks improved further earlier this week after a company source said Mizuho Financial Group Inc would this month return nearly 600 billion yen ($5.4 billion) in public funds borrowed under a recapitalization program.
TOYOTA DRIVES HIGHER
Gainers outnumbered decliners 847 to 557 on Friday on the Tokyo bourse's first section.
Volume remained high, with foreign investors keeping up their buying. A total 1.807 billion shares changed hands on the first section, slightly down from Thursday's 2.112 billion, which was the highest since July 3, 2002.
Toyota climbed 2.35 percent to 3,920 yen, a two-year closing high, helped by the firmer dollar, which boost exporters' overseas profits when repatriated. Rival Honda Motor Co jumped 3.89 percent to 5,070 yen.
Sony was up 3.33 percent at 4,660 yen, its highest close since February last year, and Canon Inc, Japan's biggest office equipment maker, rose 2.76 percent to 5,580 yen.
Investors also bought insurance firms and wholesalers on hopes that Japan's recovery would finally filter through to the domestic sector.
But banks and real estate firms, which have recently enjoyed handsome gains on the belief that Japan would solve its bad loan problems sooner than feared by some, attracted profit-taking, which curbed buying in the market in general.
Mizuho Financial Group, Japan's biggest banking group by assets and the most active issue by value, finished the day up 0.54 percent at 369,000 yen after hitting a record high of 377,000 yen soon after the opening.
Rival Mitsubishi Tokyo Financial Group was up 0.77 percent at 918,000 yen.
Another notable gainer was Kanebo Ltd., cheered by media reports that a state body that helps restructure ailing firms, the Industrial Revitalization Corp of Japan (IRCJ), was studying a plan to extend financial assistance not only to its cosmetics business but to other operations as well.
Shares in Kanebo soared 11.71 percent to 124 yen.
3287.99
1275.09
