Nikkei surges above 10,500 on tech optimism


Canon and other Japanese tech stocks surged Friday on U.S. market optimism

TOKYO, Japan -- Tokyo stocks surged higher at the opening Friday, as tech stocks built on Wall Street's strong gains Thursday, driven by optimism over a mooted Microsoft deal with the U.S. Justice Department.

The benchmark Nikkei 225 average was up 164.60 points or 1.59 percent to 10,511.88 in early trade, while the broader capital-weighted TOPIX index was up 13.9 points or 1.32 percent to 1,069.78.

Other Asia-Pacific markets also moved higher Friday morning.

In Australia, where big bank Westpac reported a A$1.9 billion profit, the S&P/ASX200 was up 8.3 points or 0.25 percent to 3256.8, while in New Zealand the Top 40 was up 12.52 points or 0.64 percent to 1977.35.

In Seoul, the Kospi put on 9.26 points or 1.7 percent to 553.35, with Hynix Semiconductor again making strong gains, up 5.9 percent to 1355 won after its rescue deal earlier in the week.

Asia reacting to Wall Street's gains

Asian markets were reacting to a better day on Wall Street Thursday. The Nasdaq composite index was up 56.1.79 points or 3.32 percent to 1746.3, while the Dow Jones industrial average put on 188.76 points or 2 percent to 9263.9.

U.S. manufacturing data was down again, but this was not enough to stem the wave of confidence flowing through the markets. In Tokyo, the gains were widespread Friday, with banks, automakers and technology stocks all moving ahead solidly.

Japanese tech stocks had faltered this week under the impact of the loss warnings by leading computer, chip and consumer electronic makers such as Matsushita Electric, Canon, Fujitsu, Mitsubishi Electric and Hitachi.

But they all made good gains. Mitsubishi Electric was up 3.9 percent to 478 yen and chipmaker and laptop leader Toshiba was up 3.1 percent to 490 yen.

Fujitsu put on 3.2 percent to 955 yen, Hitachi was up 4 percent to 895 yen, while NEC put on 5.2 percent to 1235 yen.

Sony, Matsushita move higher

Consumer electronics giant Sony was up 2.1 percent to 4760 yen and Matushita Electric added 1.8 percent to 1492 yen.

Mobile phone leader NTT DoCoMo was up 40,000 yen or 2.4 percent to 1.72 million yen.

Bridgestone Corp, which soared Thursday on reports that Japan's largest tire maker and U.S. automaker Ford may soon open talks to end their bitter dispute over tire recalls, was unchanged at 1297 yen in early Friday trade.

Automakers Honda, Nissan and Toyota were up between 1.3 and 3 percent.