LONDON (ShareCast) - Japan’s Nikkei index (news) crashed through the 10,000 barrier for the first time this year on the back of strong consumer confidence figures.
Japan’s consumer
confidence index climbed to 36.3 in May from 33.2 in April. Economists had been predicting a reading of 34. May’s rise was the fifth advance in a row by the index.
Supermarket chain Aeon (6599.KL - news) and convenience stores operator Seven & I Holdings saw their prices marked up on expectations of a surge in consumer spending now that the recession appears to be bottoming out.
Stockbroker Nomura was wanted after Merrill Lynch (NYSE: MER - news) raised its recommendation on the stock to ‘buy’, on expectations of a return to profitability this year by Japan’s top brokerage. Sector peer Daiwa Securities rose in sympathy.
Mitsubishi Heavy Industries powered ahead on reports that it is in the running to build a coal gasification power plant in Australia.
The Nikkei closed at 10,131, up 150 points on the day.
In Hong Kong, prices also advanced, helped by strong retail sales data in China and the US, though prices were off the top by the close.
China’s retail sales index rose 15.2% in May, its biggest rise in four months, while in the US May retail sales data came in ahead of expectations.
Wal-Mart supplier Li & Fung advanced in the wake of the strong US retail sales data while HSBC (LSE: HSBA.L - news) was buoyed by an announcement from China’s central bank that new lending doubled in May.
Yahoo (NASDAQ: YHOO - news) ! Japan got a boost from KBC Securities Japan, which raised its rating on the stock from ‘hold’ to ‘buy’.
The Hang Seng index rose 98 to 18,889 to cap the fourth week in a row that it has shown a gain.
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