TOKYO: Japanese stocks started 2009 on an upbeat note Monday, hitting their highest level for almost two months as hopes mounted that the world ec
onomy will start to recover later this year.
Investors took their cue from Wall Street, where shares staged a New Year rally on expectations that US president-elect Barack Obama's massive stimulus plan would help to revive the recession-hit economy.
The benchmark Nikkei-225 index gained 183.56 points, or 2.07 per cent, to 9,043.12 after a half-day session, the first of the year, ending above the 9,000-point level for the first time since November 10.
The broader Topix index of all first-section shares gained 16.67 points, or 1.94 per cent, to 875.91.
"Stocks are gaining support from the stronger stock market in the United States and expectations of a recovery in the US economy this year," said Makoto Sengoku, a market analyst at Tokai Tokyo Securities.
A weaker yen gave a boost to exporters, which have been hit hard by the recent strength of the Japanese currency, he said.
The dollar rose to 92.05 yen in Tokyo morning trade, up from 91.79 yen in New York late Friday, as expectations grew that Obama's spending plans would give a boost to the ailing economy.
But "there still remain concerns over corporate profits and the overall economy both in the United States and in Japan," said Ryuta Otsuka, a strategist at Toyo Securities.
"In the longer term, stock prices may remain fragile," Otsuka said.
Stock markets in the United States, Europe and much of Asia rose sharply on Friday on hopes for a brighter year ahead after a horrendous 2008 that saw the Nikkei post its biggest ever annual loss of 42.1 per cent.
Makers of electronic goods and cars were helped by the weaker yen on the first trading day of the year.
Kyocera gained 3.3 per cent to 6,590 yen as Tokyo Electron advanced 6.1 per cent to 3,290 yen.
Toyota Motor firmed 3.6 per cent to 3,010 yen, Nissan Motor rose 4.1 per cent to 333 yen and Honda Motor added 2.7 per cent to 1,958 yen.
