Reply #13: Nikkei rises at fastest pace in 2 months

[Ghost Dog]

http://www.ft.com/cms/s/2974fa78-4dd8-11db-8704-0000779e2340.html

Japan’s Nikkei 225 average rose at its fastest pace in two months on Wednesday, responding to strong overnight data on US consumer confidence.

The benchmark index’s advance accentuated the extent of the Japanese market’s dependence on US economic conditions at the moment, since there was little domestic news to explain its rise.

By the close of the day the Nikkei 225 was 2.5 per cent higher at 15,947.87. The broader Topix climbed 2.7 per cent to 1,591.04.

Strong confidence spurred gains across nearly all sectors, including both export-focused stocks reliant on the US and domestically focused sectors.

Among the biggest risers was the iron and steel sector, which jumped 3.2 per cent. The sector was also boosted by investor psychology after the revelation that steel and real estate had been the strongest share price climbers of the Koizumi era.

The real estate sector performed well despite lingering concerns about overvaluations, leaping 2.9 per cent.

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