NS: Nikkei closes at 6-week high, JAL shares fly high
TOKYO, Dec. 7 (Xinhua) -- Japan's 225-issue Nikkei Stock Average rose for a sixth successive session Monday, as exporters gained on the dollar's recent surge against the yen. Positive U.S. job data also lifted hopes that economic recovery is in sight.
Japan's key benchmark Nikkei added 145.01 points from Friday, or 1.45 percent, to end at 10,167.60, the index's highest close in six weeks.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 9.35 points or 1.1 percent to 898.93, its highest close since late October.
The U.S. dollar surged 4.7 percent against the yen last week as U.S. employers cut the fewest jobs in November since the recession began, bucking market insiders' expectations of far higher job cuts.
As much as 11,000 jobs were axed in November, far fewer than analysts' predictions of 130,000. The unemployment rate in the U.S. also decreased to 10 percent from 10.2 percent, according to the U.S. non-farm job data released on Friday.
Better-than-expected job data from the U.S. boosted investor confidence in the recovery of the world's largest economy and although the yen gained for the first time in five days, Japanese exporters were buoyed by the data as they rely heavily on U.S. imports, the volume of which is commensurate with employment levels, household and individual consumer spending as well as other key economic factors.
The yen strengthened against the dollar for the first time in five days to just under 90-yen on speculation Japanese companies are bringing back overseas earnings. The yen also gained at least 0.4 percent versus all of its 16 major counterparts, although levels, particularly against the dollar are far lower than last week.
"Japanese firms will repatriate the proceeds of overseas share offerings into yen over the next couple of weeks," said Yuji Saito, head of Tokyo's foreign-exchange group at Societe Generale SA.
Many exporters have set their assumed exchange rate for the latter half of fiscal 2009 at around the 90-yen line and a stronger dollar improves profits when repatriated.
"Gains in the dollar may be limited as the employment report alone is unlikely to bring forward the timing of Federal Reserve rate hikes significantly. The yen will probably weaken against the crosses this week amid firm risk sentiment," said Akane Uchida, a currency strategist at Tokyo's Royal Bank of Scotland Group Plc.
Exporter and tech issues ended mixed on Monday as investors look to lock in gains made by the year-end, according to brokers.
Sony Corp rose 2.8 percent to 2,580 yen and Canon Inc. advanced 3.3 percent to 3,750 yen. Sharp added 1.31 percent to 1,082 yen and Panasonic Corp. edged up 0.72 percent to 1,264 yen.
Alps Electric Co. jumped 3.3 percent to 539 yen and SMK Corp. leapt 3.9 percent to 535 yen, as electronic component makers are among companies expanding production of touch panels used in computers and mobile phones, according to industry experts.
Losses were made by Hitachi Ltd. which closed down 2.85 percent at 239 yen and Sanyo Electric Co. Ltd. who plunged 3.18 percent to 152 yen -- a notable decliner on Monday's market.
Toyota Motor Corp. crept up 0.54 percent to 3,750 and Honda Motor Co. Ltd. edged up 0.7 percent to 3,050 yen. Mitsubishi Motor Corp. shed 1.42 percent to close at 139 yen at the 3 p.m. bell.
Advantest Corp., maker of chip testing devices and other chip-related issues paired gains made by their U.S. counterparts following a positive forecast from TSMC, the world's biggest contract chip maker. In addition, Nomura Holdings Inc. lifted its view on the chip-manufacturing equipment sector to "bullish" from "neutral."
Advantest Corp. surged 3.57 percent to 2,175 yen and Tokyo Electron Ltd. added 1.7 percent to 5,530 yen. Hitachi Kokusai Electric Inc. jumped 3.7 percent to close at 696 yen.
Shares in Japan Airlines Corp. soared 7 percent higher to 107 yen on Monday, following reports the government is considering making provisions of up to 700 billion yen (7.8 billion U.S. dollars) in credit guarantees and other funds, to assist the debt-ridden airline. Rival All Nippon Airways Co. Ltd. also ended trade in positive territory, advancing 4.51 percent to 255 yen.
Trade was moderate on the Tokyo exchange's First section, with some 2.1 billion shares changing hands, compared with last week's daily average of around 2.4 billion.
Advancing shares outnumbered declining ones by more than 2 to 1.