TOKYO: Tokyo stocks rallied 2.11 percent Thursday as upbeat Chinese data boosted sentiment while a sharp decline in the yen lifted exporter shares.
The benchmark Nikkei index added 295.62 points to 14,337.79 by the close, after finishing in the red on Wednesday, while the Topix index of all first-section shares climbed 1.68 percent, or 19.29 points, to 1,169.34.
"The yen's weakness and the gains on Wall Street led to today's bargain hunting following the recent selling pressure," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
Buying sentiment was given an extra boost by data out of China showing manufacturing activity sharply improved in May, hitting a five-month high and helping to ease concerns about the world's number two economy.
The number was still in the contraction zone "but at least it's heading in a positive direction. There has been a minor knock-on effect", an equity trading director at a foreign brokerage told Dow Jones Newswires.
US shares rallied after minutes from the Federal Reserve's April policy meeting confirmed it would forge ahead with a cautious wind-down of its stimulus programme as the economy strengthens.
Board members discussed how to manage the impact of an interest rate hike they expect to implement in the middle of next year.
In foreign exchange markets, the dollar rose to 101.71 yen from 101.38 yen in New York Wednesday afternoon, a plus for exporters.
Sony rose 1.92 percent to 1,645 yen. The electronics giant is expected later in the day to outline its newest strategy to cast off mounting losses.
Canon rose 0.72 percent to 3,320 yen, Uniqlo clothing chain operator Fast Retailing added 3.49 percent to 32,550 yen and Japan Airlines was up 1.33 percent to 5,320 yen. (AFP)
