apanese stocks opened the year sharply higher, with the benchmark index jumping to a 2-month high Monday, lifted by optimism over a U.S. economic stimulus plan. Friday's rally on Wall Street also buoyed confidence.
In a shortened half-day session, the Nikkei 225 stock average gained 183.56 points, or 2.07 percent, to 9,043.12, its first finish above the 9,000-point line since Nov. 10.
Last year, the index plummeted a staggering 42 percent, its steepest one-year drop, on fears of a global recession.
"Sentiment was upbeat as investors were hopeful over U.S. economic stimulus measures" under the incoming administration of President-elect Barack Obama, said Yutaka Miura, senior strategist at Shinko Securities Co. Ltd.
Obama urged Congressional leaders Saturday to move quickly on an economic recovery plan, which aims to create 3 million jobs. The Democratic president-elect has not announced a final price for the plan, but aides said the cost could be as high as $775 billion.
Sentiment also was boosted by Wall Street's gains on Friday, when the Dow Jones industrial average jumped nearly 3 percent, closing above 9,000 for the first time in two months as investors shrugged off a weaker-than-expected report on manufacturing.
The dollar's modest gains against the yen also spurred buying in beaten-down exporters like Sony Corp. and Toyota Motor Corp. Exporters were heavily sold in the past weeks on worries that a recent spike in the yen could erode their profits.
The greenback was quoted at 91.98 yen in Tokyo late morning trade Monday, up from 91.79 yen in New York late Friday.
Sony rose 2.5 percent to 1,970 yen. Electronics giant Panasonic Corp. increased 2.5 percent to 1,141 yen.
Toyota jumped 3.6 percent to 3,010 yen, while its rival Honda Motor Co. added 2.7 percent to 1,958 yen. Nissan Motor Co. was up 4.1 percent at 333 yen.
Top brokerage Nomura Holdings Inc. jumped 5.1 percent to 766 yen.
The broader Topix index increased 1.94 percent to 875.91 Monday.
1/4/2009 10:45 PM
By SHINO YUASA
Associated Press Writer
TOKYO
apanese stocks opened the year sharply higher, with the benchmark index jumping to a 2-month high Monday, lifted by optimism over a U.S. economic stimulus plan. Friday's rally on Wall Street also buoyed confidence.
