Japan shares up 1.28 per cent in morning trade

April 28, 2011 | 11:09
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Japanese shares rose Thursday morning after a strong advance on Wall Street overnight, shrugging off a raft of gloomy domestic data after the March quake and tsunami.
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The benchmark Nikkei index at the Tokyo Stock Exchange rose 1.28 per cent, or 123.65 points, to 9,815.49 in morning trade. The Topix index of all first section shares was up 1.11 per cent or 9.31 points at 849.18.

Official data released before the opening showed industrial output and household spending last month suffered record falls in the aftermath of the March 11 disaster, which damaged supply chains and consumer sentiment.

But investors paid more heed to US Federal Reserve chairman Ben Bernanke's comment that the central bank had no timetable for ending its low-interest rate policies.

"Japanese stocks will follow the rise in US shares, but it may be difficult for shares to test upside, ahead of a three-day weekend," Yutaka Miura, a senior technical analyst at Mizuho Securities, told Dow Jones Newswires.

The Tokyo market is closed on Friday for a national holiday.

Brokers also said the March industrial outcome was partially offset by a brighter outlook for April and May, said Hideyuki Ishiguro, a strategist at Okasan Securities.

Sony plunged 4.81 per cent in morning trade on news Wednesday that its online video game network had been hacked.

Kyocera was up 4.26 per cent after it said its net profit surged by nearly a third in the January-March quarter, supported by robust sales of communications equipment.

The dollar sagged to 82.01 yen Thursday morning from 82.15 after following the Fed's decision to hold its key interest rate at 0-0.25 per cent "for an extended period."

In New York on Wednesday the tech-rich Nasdaq Composite index hit its highest level in more than 10 years as US stocks pushed upward after the Fed rate decision.

Riding news that the central bank would not raise ultra-low interest rates, the Dow Jones Industrial Average also surged, adding 95.59 points or 0.76 per cent to finish at 12,690.96, a three-year high.

AFP

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