Page last updated at 08:48 GMT, Friday, 12 June 2009 09:48 UK

Japan stocks close above 10,000

Businessmen are reflected on an electric market board in Tokyo
Stocks closed at their highest level for eight months

The Nikkei index of leading Japanese shares has closed above 10,000 points for the first time in eight months.

The Nikkei-225 stock average closed up 154.49 points at 10,135.82 points, as global recovery hopes grew.

Investors were encouraged by a revised 5.9% rise in industrial output in April, the biggest gain in half a century.

Better-than-expected US sales and jobs data on Thursday also spurred hopes of a recovery.

The April data was revised up from 5.2% and was the biggest monthly gain since 1953.

The Nikkei has risen 44% since it reached a low of 7,000 on March 10 and 3.8% in the past week.

Among the gainers on Friday were CSK Holdings, up 19.05% at 500 yen, Nippon Soda, up 11.48% at 476 yen and Yahoo Japan, up 8.29% at 30,550 yen.

Shortlived?

"Buyers have returned and sentiment is good," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.

But, he added, more good news is needed if Japanese stocks are to make further gains. "Expect consolidation," he said.

Other analysts were equally cautious. "Investors are upbeat over the direction of the economy with recent indicators suggesting the global economy is heading towards a recovery," said Yutaka Miura, senior strategist at Mizuho Securities.

He added, however, that the rally might be shortlived.

"Investors want to see more data to feel convinced that the global economy has bottomed. They may take a cautious approach to gauge more data," he said.

Japan remains in its worst recession since World War Two.

Its exports have plunged because of a drop in global demand.



Print Sponsor




FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific