TOKYO, Jan 5 (Reuters) - Japan's Nikkei average climbed 2.3
percent on Monday, the first trading day of the year, to hit its
highest levels in two months as optimism that better times lie
ahead lifted shares in the wake of a Wall Street surge.
Honda Motor Co and other exporters climbed on a weaker yen.
Resource-linked firms such as trading houses surged as oil jumped
more than 3 percent, after an Iranian military commander
reportedly called on Islamic countries to cut oil exports to
supporters of Israel over Israel's ground offensive in the Gaza
Strip.
Shares in Japanese office equipment maker Ricoh Co Ltd gained
after the Nikkei business daily said the company and IBM will
start sharing each other's sales network this year and promote
their servers and printers together.
"Risk aversion has eased in the last week and this has sent
both the Dow and the Nikkei higher," said Nagayuki Yamagishi, a
strategist at Mitsubishi UFJ Securities.
"There's quite a lot of expectations for the government of
(U.S. President-elect Barack) Obama and the policies he's likely
to enact, but when he actually takes office this mood may
evaporate and a lot of problems still linger."
U.S. stocks surged on Friday as investors discounted
discouraging economic data, including Friday's release showing a
sharp contraction in factory activity, with anticipation of a
turnaround in the second half of 2009 buoying the market.
The dollar rallied to a three-week high against the yen on
Friday, the first trading day of 2009, after the strong Wall
Street performance encouraged risk appetite. It was fetching
around 92.11 yen in Tokyo.
"Though at some point the market will have to face the facts
again, it's likely to rise for a while on hopes and
expectations," said Yutaka Miura, senior technical analyst at
Shinko Securities.
The benchmark Nikkei gained 198.98 points to 9,058.54, its
highest level since Nov. 11, in a half-day of trade after earlier
climbing more than 3 percent.
It finished 2008 at 8,859.56 to lose 42 percent on the year,
its worst year ever.
The broader Topix gained 2 percent to 876.69.
Energy-linked shares surged in the wake of the Middle East
troubles and concerns over a deepening row between Russia and
Ukraine over gas prices.
Oil and gas field developer Inpex climbed 6.7 percent to
745,000 yen, while Japan's largest trading firm Mitsubishi Corp
surged 7.8 percent to 1,335 yen. Fellow trader Mitsui & Co jumped
7.6 percent to 967 yen.
Market players said investors were turning their eyes to
shares that had been sold off especially sharply during the last
year, with automakers -- among the worst-hit sectors in 2008 --
and financials gaining.
Honda climbed 4.5 percent to 1,992 yen and Toyota Motor Co
gained 4 percent to 3,030 yen. Canon Inc rose 3.3 percent to
2,860 yen.
Ricoh rose 1.9 percent to 1,146 yen.
(Reporting by Elaine Lies; Editing by Chris Gallagher)
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