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Stocks Morning UPDATE1(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, May 22 -- (Kyodo) _ (EDS: ADDING DETAILS, RPICES) Tokyo stocks advanced Wednesday morning, with the Nikkei index hitting its highest level in five years and five months, supported by a weakening yen and abundant cash flowing into the Japanese equity market. The 225-issue Nikkei Stock Average ended the morning session up 178.93 points, or 1.16 percent, from Tuesday at 15,559.95 after climbing to as high as 15,564.90, its highest intraday mark since Dec. 27, 2007. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 8.74 points, or 0.69 percent, at 1,279.13. Gainers were led by airlines, construction and real estate issues while decliners included auto, steel and sea transport companies. Despite some signs of market overheating, the bourse remained firm, underpinned by "moderate recovery in the U.S. economy as well as on hopes for better corporate earnings among exporters due to the yen's slide," said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc. "Money is pushed into the Japanese market on the back of low interest rates in the United States, Europe and Japan," he said, adding the trading volume and value were ballooning to levels previously unthinkable. Investors are now closely watching Bank of Japan chief Haruhiko Kuroda's press conference after the conclusion of its policy meeting later in the day, as well as congressional testimony by U.S. Federal Reserve Chairman Ben Bernanke also on Wednesday, brokers said. Market participants are eager to see whether Kuroda will comment on recent volatility in the Japanese debt market and whether that can alleviate some jitters over rises in the yield on the 10-year government bond, brokers said. Sony jumped 181 yen, or 8.4 percent, to 2,344 yen on news reports that the electronics maker is considering a proposal from its major shareholder to spin off its movie and music business. Chubu Electric Power gained 60 yen, or 4.1 percent, to 1,534 yen after news spread that the utility will construct a coal-fired power plant with Tokyo Electric Power, which fell 40 yen, or 4.9 percent, to 775 yen due to recent surges. Among export-oriented firms, Kyocera rose 420 yen, or 3.8 percent, to 11,470 yen and Fanuc climbed 330 yen, or 2.0 percent, to 16,530 yen. Real estate developers, which are sensitive to interest rates, fared well as the long-term bond yield fell slightly in the morning. Mitsubishi Estate advanced 75 yen, or 2.7 percent, to 2,904 yen and Sumitomo Realty & Development climbed 155 yen, or 3.4 percent, to 4,680 yen. On the First Section, advancing issues outnumbered declining ones 864 to 725, while 115 remained unchanged. (c) 2013 Kyodo News International, Inc. |