Stocks Morning UPDATE1
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Feb. 7 -- (Kyodo) _ (EDS: ADDING INFO)
Tokyo stocks staged a strong rebound Friday morning as better-than-expected U.S. weekly labor data boosted confidence in the world's largest economy and led to sharp gains on Wall Street.
The 225-issue Nikkei Stock Average rose 227.65 points, or 1.61 percent, from Thursday to end the morning at 14,382.77. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 16.67 points, or 1.43 percent, to 1,179.04.
Market sentiment was lifted after U.S. shares made sizable gains overnight on a bigger-than-expected drop in weekly jobless claims, brokers said.
The data helped ease investors' nervousness over a closely watched U.S. jobs report for January, due out later in the day, as the Institute for Supply Management's disappointing manufacturing report released earlier this week raised worries that the U.S. economic recovery is faltering, they said.
"Pessimism about the upcoming jobs report eased," said Takashi Hiroki, chief strategist at Monex Inc.
He said that even if the jobs report turns out to be poor, the shock to the Tokyo stock market may not be large as it has already experienced a sell-off earlier this week in the wake of the weak ISM manufacturing data. "So the downside (of the market) will likely be limited," Hiroki said.
On the First Section, advancing issues outnumbered declining ones 1,483 to 240, while 53 finished the morning unchanged.
Export-oriented high-tech and automaker issues were higher, with optimism over their earnings outlook fueled after the dollar rose to the 102 yen range from the lower 101 yen zone seen the previous day in Tokyo.
Honda Motor rose 63 yen, or 1.8 percent, to 3,640 yen and Nissan Motor gained 15 yen, or 1.7 percent, to 880 yen. Sharp and Canon added more than 2 percent.
Sony climbed 42 yen, or 2.6 percent, to 1,666 yen after announcing a series of restructuring plans.
The electronics maker said after the previous day's market closure that it would sell its Vaio computer business and spin off its TV business, while projecting a group net loss of 110 billion yen for fiscal 2013 instead of a previously estimated profit. Suzuki Motor rose 56 yen, or 2.2 percent, to 2,625 yen after raising its net profit outlook for the current fiscal year to a record 105 billion yen thanks to robust sales and the yen's depreciation.
All of the 33 sector indexes rose, with shipping, textile and steel issues leading the way.
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