A weaker yen helped Japan’s Nikkei extend a recent rally yesterday, a day after closing at a 15-year high in the previous session, but the euro struggled against other currencies ahead of crunch Greek debt talks.
With most of Asia’s equities markets closed for the Lunar New Year holiday, trade was thin, while the lead from Wall Street was also tepid.
Shares in wafer-maker Sumco Corp jumped 5.3 percent to rise the most on the TOPIX Metal Products Index. Japan Display Inc shares jumped 5.4 percent on a report the company is considering building a plant in Japan at Apple Inc’s request. Mitsubishi UFJ Financial Group Inc, the country’s No. 1 lender, dropped 0.6 percent as the biggest drag on the TOPIX after gaining 6.9 percent the past two days.
The TOPIX added 0.4 percent to 1,500.33 in Tokyo to close at the strongest level since December 2007 and rise 3.5 percent this week, its biggest such increase this year. The Nikkei 225 advanced 0.4 percent to 18,332.30 after closing at its highest since May 2000 on Thursday.
“With excess liquidity globally, and with Japanese stocks starting to look profitable after they went through a critical juncture, investors are more likely to take risks,” Rakuten Economic Research Institute senior market analyst Masayuki Doshida said. “The gains look too quick, and as it starts to feel top heavy, selling is going to take priority.”
Shares in Wellington added 0.40 percent, or 22.72 points, to 5,748.95 but Sydney fell 0.38 percent, or 22.73 points, to close at 5,881.5.
In intraday trade Mumbai was down 0.69 percent, while Manila added 0.15 percent.
All other regional markets were closed for public holidays.
The STOXX Europe 600 Index added 0.3 percent, extending a seven-year high amid optimism Greece will reach a deal with euro-area creditors. Germany is leaving the door open to an agreement on Greece’s bailout funding as finance ministers from the eurozone’s 19 member countries prepare their negotiating positions going into a meeting in Brussels on Friday.
The new Greek government has put forward a plan that will see it ask for an extension to its bailout but without many of the painful austerity measures it claims have ruined the country’s economy.
Germany ratcheted up the pressure on Thursday by dismissing the proposal, saying it was “not a substantial proposal for a solution,” just moments after the EU had hailed it as a step in the right direction.
However, there are hopes for a breakthrough after German Vice Chancellor Sigmar Gabriel said later that while the offer fell short, “it must be used as a starting point for negotiations.”
German Chancellor Angela Merkel held talks with Greek Prime Minister Alexis Tsipras by telephone for nearly an hour, which a Greek government source said was in a “positive climate.”
The euro fell on Thursday to US$1.1363 and ￥135.13 in New York — against US$1.1415 and ￥135.49 earlier in the day in Tokyo.
On Friday the single currency was at US$1.1364 and ￥135.32.
The US dollar edged up against the yen after retreating on Thursday in response to US Federal Reserve minutes that suggested it could hold off an interest rate hike until the latter part of the year.
The greenback bought ￥118.99 against ￥118.94 in US trade.
Additional reporting by Bloomberg
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