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Tokyo Stock Exchange closes above 17,000

Japan's benchmark stock index closed above the 17,000 level for the first time in five-and-a-half years yesterday on fresh demand for technology and blue chip stocks.

The Nikkei 225 index rose 106.93 points, or 0.63 percent, to 17,045.34 points on the Tokyo Stock Exchange -- the index's highest close since Aug. 29, 2000.

Interest in technology and large-cap stocks in particular has been lifting the market, where the Nikkei has gained 3.4 percent over the last five trading days.

Disappointing industrial production figures released Thursday -- a 1.7 percent drop last month from January -- didn't seem to dent the enthusiasm.

Government officials credited structural reforms with smoothing the economy's path to recovery, and took the market's rise as further proof Japan was defeating the deflation -- or falling prices -- of recent years.

"It means the structural reforms that have been carried out are regarded highly from inside and outside Japan," said Chief Cabinet Secretary Shinzo Abe.

"There is an expectation that further reforms will be carried out, and that Japan's strength will increase further," said Abe.

Gainers included Tokyo Electron Ltd, which jumped 1.76 percent to ¥8,090 (US$68.56), and Kyocera Corp, which rose 1.06 percent to ¥10,460.

Canon Inc picked up 0.39 percent to ¥7,820 and Honda Motor Co gained 1.49 percent to ¥7,480.

Banking and insurance issues also rose, with Mitsubishi UFJ Financial Group Inc surging 4.09 percent to ¥1.78 million and Mitsui Sumitomo Insurance Co rising 2.12 percent to ¥1,593.

Shares got an extra boost yesterday from overnight trading in Wall Street, where investors regained confidence.
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