Tokyo
stocks soared Monday morning, with the key
Nikkei index hitting a roughly one-month intraday high, after rallying oil prices lifted
U.S.
shares while better-than-expected Japanese core machinery orders data brightened sentiment.
The 225-issue Nikkei Stock Average gained 352.28 points, or 2.08 percent, from Friday to 17,291.15. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 25.03 points, or 1.84 percent, at 1,384.35.
Every industry category on the main section gained ground led by insurance, banking and marine transportation issues.
Tokyo
stocks opened higher tracking
U.S.
stocks that rose on strong oil prices. Oil prices jumped to
$38.50 per barrel in
New York
on Friday, a roughly three-month high, after the
International Energy Agency's monthly report said that crude prices may have "bottomed out."
Better-than-expected Japanese core machinery orders data for January released before the opening bell also brightened sentiment, analysts said.
"The
Tokyo
stock market is showing sustained strength with oil prices seeming to have found a bottom and also global fears including worries about
China
and the
U.S.
economy receding,"
Akira Tanoue of
Nomura Securities Co.'s investment research and investor services department, said.
Tanoue said that investors are now turning their attention to the Bank of Japan's two-day policy meeting starting Monday afternoon and the two-day
U.S.
Federal Open Market Committee meeting that will be held through Wednesday.
On the First Section, advancing issues trounced declining ones 1,790 to 111, while 41 ended the morning unchanged.
Kawasaki Heavy Industry rose soared 8 yen, or 2.5 percent, to 333 yen after the Nikkei business daily reported Monday that the major heavy machinery manufacturer will partner with Anglo-Dutch oil giant Royal Dutch Shell Plc to develop technology to transport hydrogen by ship, eyeing to boost the supply of the next-generation energy source and set the international standard for marine transportation.
Nippon Steel & Sumitomo Metal spiked 48.50 yen, or 2.2 percent, to 2,297.00 yen on reports Saturday that the top crude steel firm will invest up to 1 billion reals ($280 million) in Brazilian steelmaker Usiminas SA, hoping to convince creditors of Usiminas to refinance its debt and extend other cooperation.
The stabilizing oil market boosted resource-related shares with TonenGeneral Sekiyu rising 16 yen, or 1.7 percent, to 955 yen.
==Kyodo
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