Nikkei at 15-year high as Japan records rise in exports

Japan’s Nikkei rose 0.5 per cent to heights last seen in 2000, helped by gains in financial and shipping companies. Data showed the country’s exports grew at the fastest annual pace since late 2013 as a weaker yen made it more competitive.

Mitsubishi UFJ Financial Group, Japan’s largest lender, climbed 3.6 per cent to be the biggest support to the Topix index as banks led gains among industry groups. Anti-virus software maker Trend Micro surged 6.6 per cent after projecting profit above analyst estimates. Robotics maker Fanuc. extended an all-time high. Sony added 1.7 per cent after forecasting a surge in operating earnings.

The Nikkei 225 gained 0.4 per cent to 18,264.79 in Tokyo, the highest closing level since May 2nd 2000. The Topix added 0.8 per cent to 1,494.93, its strongest close since December 2007. Three stocks rose for each that fell on the gauge.

“We’re seeing a massive catch-up rally by the megabanks this month, which is powering the Nikkei 225 to a 15-year high,” said David Welch, head of equity sales trading at Reorient Group in Hong Kong. “Sony has been the return-on-equity darling for investors, and after the recent headlines around Fanuc, investors are searching for the next big ROE opportunity and have locked in on the banks.”

The Topix Banks Index gained 2.7 per cent, bringing this year’s advance to 11 per cent. The industry group dropped 3.9 per cent last year, when the broader Topix gained 8.1 per cent.

Mitsubishi UFJ gained 3.6 per cent to 770.2 yen. Sumitomo Mitsui added 2.6 per cent to 4,687 yen, while Mizuho climbed 3.6 per cent to 218.2 yen. The three lenders, Japan’s so-called megabanks, were the biggest supports to the Topix.

Fanuc climbed a fourth day, extending its February gain to 16 per cent and closing at 23,010 yen, a record high.

Exports Accelerate

Data showed Japan’s export growth accelerated in January to the fastest pace in more than a year. Overseas shipments rose 17 per cent from a year earlier, the finance ministry said. Imports fell, narrowing last January’s record deficit.

Agencies