Tokyo Stocks Hit Fresh 33-year High on Bright Tankan Results

TOKYO (Jiji Press) — Tokyo stocks turned higher Monday on rosy results of the Bank of Japan’s Tankan quarterly business sentiment survey for June, with the benchmark Nikkei average marking a fresh 33-year high.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section rose 564.29 points, or 1.70%, to finish at 33,753.33, the highest level since March 9, 1990.

The broader TOPIX index ended 32.21 points, or 1.41%, higher at 2,320.81, the best closing since July 23, 1990.

The market mood was brightened by the central bank survey released before the opening bell.

“Market players were also heartened by the survey showing robust capital spending plans at big manufacturers in the current fiscal year,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.

Also buoying Tokyo stocks were the high finishes of key U.S. market indexes Friday thanks to retreating worries over prolonged interest rate hikes by the Federal Reserve after the release the same day of slower year-on-year growth in the May U.S. personal consumption expenditures price index.

“Foreign investors are seen continuing to buy Japanese stocks this month, boosting the market mood,” an official at a bank-affiliated securities firm noted.