Japanese stock market roars ahead

The Nikkei had its best day since 15 December

The Japanese stock market has posted its biggest one-day rise so far this year, buoyed by positive jobs figures issued on Friday in the US.

The benchmark Nikkei share index closed 312 points higher at 11,440, an increase of 2.8%.

The rally came as investors digested news that the US created nearly a quarter of a million new jobs in May.

The better-than-expected data boosted hopes of an economic turnaround in the US, a major importer of Japanese goods.

Exporters cheer

Carmaker Toyota, which depends on the US for a high proportion of its revenues, closed more than 2% higher at 4,150 yen.

Consumer electronics giant Sony also benefited, closing nearly 3% higher at 4,060.

Elsewhere, domestic banks and insurance groups posted strong gains as investors bet on positive Japanese economic growth figures later this week.

Banking group UFJ Holdings closed 7% higher at 552,000 yen, while Mizuho Financial rose 4.4% to 469,000 yen.

Analysts said the US jobs figures had also cemented expectations of a rise in US interest rates later this month, removing a source of uncertainty that had been weighing on the market.

Wall Street closed higher on Friday despite the prospect of higher borrowing costs, with the benchmark Dow Jones share index settling 0.4% higher at 10,242.