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Tokyo: Stocks surge more than 3% on global rebound

Friday, August 28, 2015 - 15:00
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[TOKYO] Tokyo shares soared over 3.0 per cent on Friday, extending gains from a day earlier after strong US data sent Wall Street flying and fuelled a global rally that saw a surge in Chinese equities.

The Nikkei-225 index at the Tokyo Stock Exchange ended up 3.03 per cent, or 561.88 points, at 19,136.32.

The broader Topix index of all first section shares jumped 3.29 per cent, or 49.39 points, to 1,549.80.

Tokyo's rise came as the Dow Jones Industrial Average soared after the Commerce Department reported that US gross domestic product (GDP) grew at an annual rate of 3.7 percent in the second quarter, much higher than the 2.3 per cent initially estimated.

"Amid concerns over the outlook of the global economy, the sound US GDP growth is supporting the market," Nobuyuki Fujimoto, senior market analyst at SBI Securities, told Bloomberg News.

Tokyo's gains accelerated Friday afternoon as "some investors tried push the upside a bit further", said Toshihiko Matsuno, research head at SMBC Friend Securities.

Shanghai stocks also rose on Friday, extending gains after China cut interest rates earlier in the week and amid rises in global markets following days of turmoil.

Global oil prices surged more than 10 per cent Thursday after the strong US figures lifted confidence about the world's biggest economy and petroleum user.

US benchmark West Texas Intermediate jumped US$3.96 to US$42.56 a barrel.

Investors appeared to shrug off weak Japanese economic data earlier Friday.

Shortly before the open, official figures showed Japanese inflation fell back to zero in July while household spending dropped again, boosting speculation the central bank would unleash more stimulus, and putting pressure on the yen.

On currency markets, the dollar rose to 121.12 yen, from 121.02 yen in New York, where it firmed against other major currencies on the revised GDP figures.

In Tokyo share trading, struggling electronics maker Sharp surged 8.92 per cent to 183 yen, as the top-selling Yomiuri newspaper said it may sell a majority stake in its liquid crystal display business to rival Japan Display.

Meanwhile, the weaker yen supported exporters, including Fuji Heavy Industries, maker of Subaru brand vehicles, which jumped 5.56 per cent to 4,294.0 yen.

Auto giant Toyota soared 4.55 percent to 7,346 yen, while Sony added 3.86 percent to 3,169.5 yen.

AFP