Tokyo: Nikkei snaps eight-day losing streak

[TOKYO] Tokyo stocks rose on Thursday for the first time in almost two weeks as investors cheered progress in US negotiations over raising the nation's debt ceiling.

The benchmark Nikkei 225 index closed up 0.54 per cent, or 149.34 points, at 27,678.21, the first gain after falling for eight straight sessions.

But the broader Topix index gave up earlier gains and ended down 0.12 per cent, or 2.29 points, at 1,939.62.

The US dollar stood at 111.45 yen, against 111.41 yen in New York late on Wednesday.

The Nikkei stayed in positive territory throughout the day, with investors encouraged by an offer by Republicans to compromise in high-stakes talks on lifting the US debt limit.

The proposal, which Democrats were open to, soothed immediate worries that the country would default on debt obligations and lead to what many have warned would be an economic catastrophe.

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Wall Street rallied and Asia followed.

A dip in oil prices also placated investors, although soaring natural gas costs remain a cause for concern, analysts said.

"Easing worries over the US debt-ceiling problem and over the rise of energy prices led to buybacks of growth shares," Okasan Online Securities said in a note.

Marine transportation shares gained, as they had been sold down significantly recently, SMBC Nikko Securities said in a note.

Japan's top shipping firm Nippon Yusen Kabushiki Kaisha added 5.16 per cent to 7,750 yen and its smaller rival Kawasaki Kisen jumped 6.92 per cent to 5,410 yen.

Uniqlo operator Fast Retailing firmed 1.25 per cent to 71,470 yen.

Sony rose 0.60 per cent to 11,695 yen, and Toyota firmed 1.58 per cent to 1,869 yen.

However, Mitsubishi UFJ Financial Group fell 1.39 per cent to 650.8 yen, energy firm INPEX plunged 8.30 per cent to 895 yen, and chipmaker Murata Manufacturing dropped 0.50 per cent to 8,505 yen.

AFP