TOKYO, Jan. 14 (Xinhua) -- Japan's Nikkei average rose 1.61 percent from Wednesday as tech and exporter issues were buoyed on hopes the upcoming U.S. earnings season will show positive signs of economic recovery.
Japan's key benchmark Nikkei added 172.65 points to 10,907.68, marking its highest close since Oct. 3, 2008.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 14.99 points, or 1.59 percent, to 959.01, the sharpest climb for the index since Dec. 11.
Poor machinery orders data for Japan released on Wednesday morning had little impact on the market, which also shrugged off its woes about China's credit tightening from the previous day and buying in high-tech, shipping and financial issues were profuse.
"Hopes for a recovery in the economy and earnings have returned thanks to the stable state of the U.S. economy and currency markets, though investors might be getting a little ahead of themselves in terms of the speed of recovery in earnings," said Masaru Hamasaki, senior strategist at Toyota Asset Management.
Trading volume on the Tokyo exchange's first section hit a seven-month high for a second day, helped by dealings in Japan Airlines Corp., which is potentially headed for bankruptcy, accounting for 31 percent of the exchange's trade on the first section, with 1 billion shares in the airline changing hands.
JAL shares soared 14.3 percent to 8 yen, after falling by its daily trading limit of 30 yen in the previous two days. Rival carrier All Nippon Airways Co. Ltd. also rebounded, rising 1.74 percent to 293 yen.
High tech and exporter-issues rose Wednesday as the U.S. is a key market for Japanese manufactures and investor sentiment was optimistic from the get-go as the world's largest economy continues to stabilize and show gradual but consistent signs of improvement, brokers said.
Buying was also boosted in afternoon trade on the U.S. dollar's rise to the upper 91-yen level, compared to the lower 91-yen level during trading hours on Wednesday.
Panasonic Corp. surged 6.1 percent to 1,549, while Nikon Corp. climbed 8.3 percent to 2,047 yen. Sanyo Electric also gained ground on Wednesday, adding 3.77 percent to close at 165 yen.
Auto equipment maker Denso Corp. climbed 4.66 percent to 3.010 yen and Mazda Motor Corp. also gained on optimistic investor speculation, advancing 4.15 percent to 251 yen per share. Isuzu Motors Ltd. gained 2.96 percent to 209 yen, in a positive day's trade for Japan's auto-sector.
Pairing gains made on Wall Street, Japan's financial sector rose on Wednesday, with Mizuho Financial Group inc. rising 5.68 percent to 186 yen and Sumitomo Mitsui Financial Group Inc. gaining 3.31 percent to 2,898 yen. Top-lender Mitsubishi UFJ Financial Group Inc. capped off the megabanks' advance, closing up2.09 percent at 489 yen at the bell.
Japan's shipping sector also benefited from a broad range of buying and shares of Mitsui O.S.K. Lines Ltd., owner of the world's largest shipping fleet, climbed 7.2 percent to 623 yen, after the Nikkei business daily said the company likely made a pre-tax profit of 10 billion yen for the October-December period, a rise of more than 500 percent from the preceding quarter.
Other shippers also advanced with Nippon Yusen KK jumping 5.1 percent to 352 yen and Kawasaki Kisen Kaisha Ltd rising 7.4 percent to 349 yen.
Trade was active on the Tokyo exchange's First section, with around 3.2 billion shares changing hands, well above last week's daily average of 2.1 billion shares.
Advancing issues outnumbered declining ones by 1,169 to 381, with declining issues being comprised of retailers and real estate issues.
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