Japan's Nikkei average hit a 15-month closing high today, its first trading day of the year, with a weaker yen lifting exporters such as Kyocera Corp after US jobless claims data strengthened hopes for a steady economic recovery.
The Tokyo Stock Exchange had a smooth launch for its $145 million "Arrowhead" trading system, as Asia's biggest bourse targets a dramatic increase in speed to revive its business and reputation.
Japan Airlines Corp soared 31 per cent after media reported that the state-owned Development Bank of Japan would double its credit line for the struggling airline to 200 billion yen.
The Nikkei's upbeat start to 2010 follows a 19 per cent gain in 2009 when high-tech exporters led a rebound on stimulus measures which helped turn around the world economy as well as a weaker yen.
The market will likely hover around here until earnings prospects for the year after next become clearer."
In thin trade after the New Year's holiday, the Nikkei rose 1 per cent to 10,654.79, its highest close since October 3rd, 2008. Its 19 per cent gain for 2009 follows a 42 per cent plunge in 2008.
The broader Topix added 0.9 per cent to 915.75.
Some 1.3 billion shares changed hands on the first section of the Tokyo Stock Exchange, below last week's daily average of 1.6 billion.
Advancing stocks outnumbered declining ones by more than 2 to 1.
Kyocera climbed 2.1 per cent to 8,340 yen and Sony gained 2.3 per cent to 2,731 yen. Honda advanced 1.9 per cent to 3,170 yen.
Shares of JAL surged to 88 yen. The stock lost a quarter of its value on Wednesday, the last trading day of 2009, on expectations it would face bankruptcy as part of a state restructuring plan.
The state-owned Development Bank of Japan said the government had asked it to double its credit line for JAL to 200 billion yen to provide it with funding while a state-backed turnaround fund decides whether to bail out the airline.
A spokesman for the DBJ said the bank was considering the government's request.
Shares of All Nippon Airways jumped 5.2 per cent to 265 yen after media reports said the airline was considering taking over the international routes of struggling rival JAL.
Consumer lender Aiful Corp dropped 5.3 per cent to 124 yen after the International Swaps and Derivatives Association (ISDA) voted on December 30th in favour of an auction to settle some $1.3 billion in credit derivatives contracts on Aiful.
Reuters