(RTTNews) - The Japanese market closed sharply higher on Friday, ending a two-day losing streak. The market started off on a firm note after Wall Street rallied overnight and extended gains to finish near the day’s high. The key Nikkei index recovered the 13,000 level. Stocks rose across the board, but steel, real estate and financial stocks were the major gainers.

The benchmark Nikkei 225 index closed up 304.62 points or 2.4% at 13,072.87, its highest close since August 18, when the index finished at 13,165.05. For the week, the index recorded gains of 3.2%. The broader Topix index of all the First Section issues on the Tokyo Stock Exchange gained 35.18 points or 2.9% to finish at 1,254.71.

In the currency market, the U.S dollar traded at 108.76-108.78 in late Tokyo deals, down from lower 109-yen levels in early trade. In late trades in Tokyo Thursday, the dollar was quoted at 108.89-108.92.

A moderate rise in Japan’s industrial output and the first rise in housing starts in 13 months also supported sentiment. Industrial production climbed a seasonally adjusted 0.9% in July to 107.9 from 106.9 in June, the Ministry of Economy, Trade and Industry said.

Meanwhile, the Ministry of Land, Infrastructure and Transport said that the Japanese housing starts increased 19% year-over-year in July, after declining 16.7% in June. Economists were looking for a 15% rise in July. Construction orders received by big 50 contractors surged 42.3%, year-on-year, after falling 11.7% in June.

Among other data released today, Japan’s core inflation rate surged to an annualized pace of 2.4% in July from 1.9% in the previous month on the back of soaring energy and raw material costs, while retail sales rose 1.9% in July from a year earlier as consumers paid more for fuel and food. The unemployment rate dipped to 4.0% in July from 4.1% in the previous month.

Among steelmakers, Nippon Steel surged 5.4%, JFE Holdings jumped 4.7%, Kobe Steel jumped 3.9% and Sumitomo Metal Industries advanced 3.4%. In the real estate sector, Mitsubishi Estate gained 4.3%, Mitsui Fudosan rose 3.6% and Sumitomo Realty & Development climbed 3.8%.

Among major financials, gainers included Mizuho Financial Group 4.0%, Mitsubishi UFJ Financial Group 3.6% and Sumitomo Mitsui Financial Group 4.2%.

Game maker Nintendo closed limit-up 8.4% after the company raised its group net profit forecast for this fiscal year ending March to 410 billion yen from 325 billion yen.

Retailers agained on the back of the report that retail sales rose in July. Fast Retailing gained 3.4%, Seven & I Holdings surged 4.6%, and Aeon advanced 2.3%.

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Posted in Categories: Economy, Japan, Releases, USA.

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