Japan's Nikkei stock average climbed to close above 10,000 today for the first time in eight months as upbeat data from Japan and China fed hopes for global economic recovery, leading to broad-based buying.
Nomura Holdings rose more than 5 per cent after Merrill Lynch upgraded it to "buy" from "neutral", saying in a report that Japan's largest brokerage was likely to turn profitable in the next financial year. Other securities firms gained as well.
The latest round of Chinese economic data, released during the midday break, showed factory output growth rebounded in May alongside stronger expansion in credit and consumer spending, bolstering evidence that the world's third-largest economy is on the path to recovery.
Sentiment was given a another boost by Japanese data showing that consumer confidence improved in May.
But market analysts said the benchmark, which rose 3.8 per cent this week for its third straight week of gains, may take a breather soon. It has risen 44 per cent since a March 10 low just above 7,000.
“Buyers have returned and sentiment is good,” said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
“But the 'green shoots' rally has really about reached its limits, and we'll need some signs of improving company earnings such as upward forecast revisions, perhaps in a month or so, to really make more gains. For a while, expect consolidation."
In active trade, the Nikkei climbed 154.49 points to 10,135.82, its highest close since October 7. It rose as far as 10,170.82 at one point.
The broader Topix gained 1.1 per cent to 950.54.
China's industrial production for May grew 8.9 percent, beating economists' forecasts of a 7.5 percent rise but in line with a figure reported by Chinese newspapers earlier this week.
Retail sales grew by 15.2 per cent in the year to May, also beating forecasts.“The Nikkei could be trading between 10,000 and 12,000 by the end of this year, as the economic outlook for emerging countries such as China and India is pretty bullish,” said Yoku Ihara, a manager at Retela Crea Securities.
Reuters