Nikkei closes at 1-month high as hopes of global demand boost exporters

SINGAPORE, Jan 17 (Reuters) - Japan's benchmark share index
on Friday marked its highest close in a month, after touching a
15-month peak earlier in the session, as hopes for a rebound in
global demand and a softer yen drove broad-based gains.
The Nikkei 225 Index .N225 closed 0.45% firmer at
24,041.26. In early trading, it scaled its highest level since
October 2018, taking gains so far this year to more than 1%. The
broader Topix .TOPX was 0.4% stronger.
"When you look at Japan, you're not just looking at Japan.
Half of earnings at Japanese companies are non-Japanese, so
there is a big international story," said Jim McCafferty, Joint
Head of APAC Equity Research at Nomura in Hong Kong.
"As we go into earnings season we are probably going to get
guidance from a number of companies that point to a
strengthening in global demand."
The formal signing of the Sino-U.S. trade agreement on
Wednesday and the recent easing of tensions in the Middle East
have removed uncertainty and fired hopes for a revival in global
growth and demand. Chinese economic data released on Friday, while subdued for
the year, included an unexpected jump in factory output and
solid retail sales in December, suggesting the world's
second-biggest economy ended the year on a firmer note.
Optimism has also pushed the safe-haven Japanese yen JPY=
to an almost eight-month low - a boon for exporters. The dollar
last traded at 110.23 yen, up 0.08% during the session. FRX/
Gains were spread across all sectors of the market, with 167
advancers in the Nikkei index against 46 decliners, led by
Japan's industrial engine room: carmakers, steelmakers and
industrials.
"Since investors had already developed concerns about the
Chinese economy after seeing Japan's machine tool orders data
slumped in December due mainly to weak demand from China,
today's data soothed some of those market fears," said Yasuo
Sakuma, chief investment officer at Libra Investments, Tokyo.
The largest percentage gainers in the index were Mazda Motor
Corp 7261.T up 5.77%, followed by power-supply equipment maker
Fuji Electric Co Ltd 6504.T gaining 5.61 % and industrial
equipment maker Yokogawa Electric Corp 6841.T rose 4.97%.
Financials found support, too, after Morgan Stanley MS.N
overnight capped a solid set of fourth-quarter results from Wall
Street's big banks this week, boding well for their Japanese
peers.
Nomura Holdings 8604.T rose 1%, while Mitsubishi UFJ
Financial Group 8306.T and Sumitomo Mitsui Financial Group
8316.T also gained.