Japan's TOPIX index ended at a fresh 16-month high on Thursday as investors, convinced the rallying stock market had further room to rise, snapped up brokers and IT-related issues including Softbank Corp.
Softbank, Japan's top Internet services company, jumped 16.58 percent to 7,030 yen after Goldman Sachs said it had acquired a 6.06 percent stake to become a major shareholder in the firm. Softbank accounted for about 14 percent of all trading on the Tokyo Stock Exchange in value terms.
"It's a little hard to imagine exactly why Softbank would jump like it did on this Goldman news, but it shows how investors are just itching for a reason to bid it up," said Haruki Takahashi, head of equity dealing at UFJ Tsubasa Securities.
"Softbank has become one of the key barometers of sentiment for the stock market. This tells us sentiment is pretty good."
The broad-based TOPIX index of all first-section issues closed up 0.98 percent or 10.55 points at 1,090.85, its highest finish since June 12, 2002. The Nikkei average erased morning losses to end 1.15 percent higher at 11,025.15, its first close above the key 11,000 level since September 18.
Brokers were in favor, reflecting the market's bullish tone and very active trade. About 1.76 billion shares changed hands on the first section of the TSE, the highest level in three weeks. Turnover reached 1.55 trillion yen ($14.16 billion).
Nomura Holdings, Japan's top broker, rose 2.89 percent to 1,924 yen. Second-largest Daiwa Securities Group closed up 4.46 percent at 866 yen after marking a 16-month intraday high of 867 yen in afternoon trade.
But Internet-related stocks followed Softbank's lead and stole the show. Data processing service firm Trans Cosmos Inc shot up 11.76 percent to 3,800 yen and top Web portal Yahoo Japan Corp rose 11.9 percent to 1.88 million yen.
"The fact that investors are taking some money out of banks and putting it into techs and IT-related shares is a good sign. That kind of rotation shows the market is strong," said Makoto Suzuki, fund manager at Chuo Mitsui Asset Management.
LOOKING PAST BUSH VISIT
Some blue-chip exporters such as Toyota Motor Corp drew buyers after the dollar firmed to around 109.70 yen following upbeat data on the U.S. economy, including a sharp upward revision of August retail sales.
The dollar hit a three-year low around 108.20 yen last week.
Toyota, Japan's largest auto maker, rose 1.77 percent to 3,450 yen, while Sony Corp, the world's largest consumer electronics maker, climbed 2.28 percent to 4,030 yen and Fuji Photo Film Co rose 2.17 percent to 3,300 yen.
The market brushed off Wall Street's retreat on Wednesday and the fall in shares of International Business Machines Corp in after-hours trade. IBM, the world's top computer firm, reported quarterly earnings after the close.
Some traders said investors were looking past a meeting between President Bush and Japanese Prime Minister Junichiro Koizumi on Friday, expecting Bush to say nothing new of consequence about the dollar's recent fall against the yen.
Bush said earlier in the week that markets should determine currency rates. The remarks were initially taken by currency traders as a warning to the Japanese government against yen-selling intervention, but Bush is also coming to Japan to secure aid for Iraq and the dollar has since regained ground.
"He's made his comments on the yen already -- that it should be determined by the markets. Japan has made their comments -- that they'll intervene if they think necessary," said Charles Lambert, vice president of equity sales at J.P. Morgan.
"I think it's pretty much discounted, people have been talking about it all week long... I think we'll have a relief rally in the dollar next week when Bush moves on."
Elsehwere, builder Kajima Corp tumbled 5.02 percent to 397 yen after it said on Wednesday it planned to raise about 39.6 billion yen in its first new share issue in three decades, to raise funds for development projects.
Nissan Motor Co Ltd, Japan's third-largest auto maker, closed down 0.08 percent at 1,296 yen, reflecting caution ahead of its earnings, which came after the close.
Nissan reported a 15 percent jump in half-year operating profit to a record level and kept unchanged its full-year forecast -- which calls for an 11 percent jump in operating profit -- despite the recent slide in the dollar.
Softbank, Japan's top Internet services company, jumped 16.58 percent to 7,030 yen after Goldman Sachs said it had acquired a 6.06 percent stake to become a major shareholder in the firm. Softbank accounted for about 14 percent of all trading on the Tokyo Stock Exchange in value terms.
"It's a little hard to imagine exactly why Softbank would jump like it did on this Goldman news, but it shows how investors are just itching for a reason to bid it up," said Haruki Takahashi, head of equity dealing at UFJ Tsubasa Securities.
"Softbank has become one of the key barometers of sentiment for the stock market. This tells us sentiment is pretty good."
The broad-based TOPIX index of all first-section issues closed up 0.98 percent or 10.55 points at 1,090.85, its highest finish since June 12, 2002. The Nikkei average erased morning losses to end 1.15 percent higher at 11,025.15, its first close above the key 11,000 level since September 18.
Brokers were in favor, reflecting the market's bullish tone and very active trade. About 1.76 billion shares changed hands on the first section of the TSE, the highest level in three weeks. Turnover reached 1.55 trillion yen ($14.16 billion).
Nomura Holdings, Japan's top broker, rose 2.89 percent to 1,924 yen. Second-largest Daiwa Securities Group closed up 4.46 percent at 866 yen after marking a 16-month intraday high of 867 yen in afternoon trade.
But Internet-related stocks followed Softbank's lead and stole the show. Data processing service firm Trans Cosmos Inc shot up 11.76 percent to 3,800 yen and top Web portal Yahoo Japan Corp rose 11.9 percent to 1.88 million yen.
"The fact that investors are taking some money out of banks and putting it into techs and IT-related shares is a good sign. That kind of rotation shows the market is strong," said Makoto Suzuki, fund manager at Chuo Mitsui Asset Management.
LOOKING PAST BUSH VISIT
Some blue-chip exporters such as Toyota Motor Corp drew buyers after the dollar firmed to around 109.70 yen following upbeat data on the U.S. economy, including a sharp upward revision of August retail sales.
The dollar hit a three-year low around 108.20 yen last week.
Toyota, Japan's largest auto maker, rose 1.77 percent to 3,450 yen, while Sony Corp, the world's largest consumer electronics maker, climbed 2.28 percent to 4,030 yen and Fuji Photo Film Co rose 2.17 percent to 3,300 yen.
The market brushed off Wall Street's retreat on Wednesday and the fall in shares of International Business Machines Corp in after-hours trade. IBM, the world's top computer firm, reported quarterly earnings after the close.
Some traders said investors were looking past a meeting between President Bush and Japanese Prime Minister Junichiro Koizumi on Friday, expecting Bush to say nothing new of consequence about the dollar's recent fall against the yen.
Bush said earlier in the week that markets should determine currency rates. The remarks were initially taken by currency traders as a warning to the Japanese government against yen-selling intervention, but Bush is also coming to Japan to secure aid for Iraq and the dollar has since regained ground.
"He's made his comments on the yen already -- that it should be determined by the markets. Japan has made their comments -- that they'll intervene if they think necessary," said Charles Lambert, vice president of equity sales at J.P. Morgan.
"I think it's pretty much discounted, people have been talking about it all week long... I think we'll have a relief rally in the dollar next week when Bush moves on."
Elsehwere, builder Kajima Corp tumbled 5.02 percent to 397 yen after it said on Wednesday it planned to raise about 39.6 billion yen in its first new share issue in three decades, to raise funds for development projects.
Nissan Motor Co Ltd, Japan's third-largest auto maker, closed down 0.08 percent at 1,296 yen, reflecting caution ahead of its earnings, which came after the close.
Nissan reported a 15 percent jump in half-year operating profit to a record level and kept unchanged its full-year forecast -- which calls for an 11 percent jump in operating profit -- despite the recent slide in the dollar.
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