Japan's Nikkei Rises 1.7 Percent

Friday, March 28, 2008

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TOKYO —

Japan's stock market rose to its highest level in two weeks Friday as last-minute buying before the end of the fiscal year lifted a wide range of blue chips, including electronics and financial shares.

The benchmark Nikkei 225 stock index rose 1.71 percent at 12,820.47, its highest level since March 12.

Traders say the market may be entering a brief rebound period as major U.S. investment banks have finished reporting quarterly earnings and expectations grow for fresh money from the domestic buyers, including pension funds, in the new fiscal year from April 1.

"Now that the worst is over for the market, it is entering an upward trend as the tension eases," said Mitsushige Akino, chief fund manager for Ichiyoshi Investment Management.

The improved mood invited bargain-hunting in issues with relatively good earnings fundamentals such as trading houses. Mitsubishi Corp. jumped 5 percent to 3,020 yen, and Sumitomo Corp. advanced 3.3 percent to 1,368 yen.

Matsushita Electric added 4.5 percent to 2,215 yen, and Mitsubishi Electric Industrial Corp. climbed 4.3 percent to 889 yen.

Taisho Pharmaceutical Co. shed 1.7 percent to 2,010 yen on a Nikkei report it will likely see a profit decline next fiscal year due to an expected drop in its prescription drug sales.

The Topix index of all the Tokyo Stock Exchange First Section issues gained 1.42 percent to 1243.81.

In currencies, the dollar was higher against the yen, trading around 99.76 yen late Friday afternoon.