Roundup: Tokyo stocks close higher on solid U.S. data, yen's softer tone

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TOKYO, May 17 (Xinhua) -- Tokyo stocks closed higher on Friday as investor sentiment was lifted by robust economic data released from the U.S. overnight, while a comparatively weak yen against the U.S. dollar supported the key export sector.

The 225-issue Nikkei Stock Average added 187.11 points, or 0.89 percent, from Thursday to close the day at 21,250.09.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 16.70 points, or 1.09 percent, to finish at 1,554.25.

Trading got off to a bright start following a positive lead from Wall Street overnight, market strategists here said.

U.S. shares advanced following better-than-expected U.S. housing starts data for April, they highlighted, noting that a solid reading from the Philadelphia Federal Reserve's manufacturing conditions index for May overnight also added support and helped temporarily allay fears about the health of the U.S. economy, which bolstered sentiment here.

"Markets welcomed the figures after the country's sluggish retail sales and production output data for April released Wednesday," Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co, was quoted as saying.

In addition, the yen's retreat against the U.S. dollar gave export-related issues a boost, as they rely on a weaker yen to augment profits made overseas when repatriated and profit outlooks are increased when the yen falls against its counterparts.

As such, Fujitsu gained 0.5 percent, while NEC closed 2.3 percent higher.

Sony Corp. surged 9.9 percent, after announcing a share buyback program worth 200 billion yen (1.82 billion U.S. dollars) and a new partnership with Microsoft Corp. related to streaming games, and other media.

Oil-related issues gained following the price of crude rising overnight, and JXTG Holdings added 2.2 percent, while Idemitsu Kosan closed the day 4.5 percent higher.

Market analysts said that following the market's recent rise, shares may remain capped for the time being, however, amid ongoing macroeconomic uncertainties and a circumspect mood ahead of the release of GDP data for Japan due out on Monday, which might show a contraction.

"I think Japanese share markets will remain capped for now, given the perception that they will be susceptible to foreign demand and vulnerable to trade tensions," Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management, said.

Some cyclical and electronic issues bucked the upward trend, with Screen Holdings dropping 3.9 percent and TDK losing 4.7 percent. Taiyo Yuden, meanwhile, finished the day 5.1 percent lower.

By the close of play, oil and coal product, miscellaneous product, and information and communication-linked issues comprised those that gained the most, and issues that advanced outpaced those that declined by 1,705 to 377 on the First Section, while 58 ended the day unchanged.

On the main section on Friday, 1,349.52 million shares changed hands, dropping from Thursday's volume of 1,461.58 million shares.

The turnover on the final trading day of the week came to 2,429.4 billion yen (22.15 billion U.S. dollars). Enditem

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