Japan awake for big spenders

RENEWED hopes that US consumers have not lost the urge to spend money boosted shares in

After a week of falls, Tokyo stocks scrambled to modest gains as buyers moved back in on recently friendless exporting companies, taking the Nikkei 225 Average up 60.25 points to close at 11,552.79.

The flickering of the light at the end of Japan's long and dark economic tunnel was also brightened on Tuesday when the Bank of Japan said it saw an end to the recession, although the recovery would be modest this year.

More enthusiasm was kindled by the US Conference Board's index of consumer sentiment, which showed stronger resilience in March than economists had been expecting.

After the University of Michigan's sombre reading of sentiment last week, and official data indicating a slowdown in the rise of personal income spending, the fall from 110.7 to 108.8 in the Conference Board's index was less steep than had been predicted, suggesting that Americans' urge to splurge has not died.

Japanese exporters rely on the US market for about one-third of their sales, and the unexpected optimism triggered demand for shares in consumer electronics manufacturers, computer-related counters and car makers. Shares in Sony rose by almost 3% after a battering as hopes faded that the PlayStation 2 phenomenon will be enough to support ambitious earnings forecasts.

Honda, whose sales record in the US is as impressive Sony's, rose almost 3% on expectations that its new model range including the Jazz will keep profits bubbling this year. Nissan shares rose by a more modest 0.7%, but this was enough to take the stock to a six-year high as it continues to be sought by investors who believe that the turnaround generated by Belgian-born President Carlos Ghosn still has a long way to run. Analysts expect some more positive news later this month when the company unveils its mid-term business plan.

Stockbroking giant Nomura's ability to keep making profits while its rivals drown in red ink kept its shares powering ahead, and the price rose almost 3%. Net profits fell more than 40% last year, but investors focused on the buoyant fourth quarter, boosted by windfall gains from last month's sale of its British pubs. Banking giant Mizuho Holdings rose more than 5% following assurances that it had cured computer glitches that froze its cash machines.

In Sydney a good export performance last month lifted stocks. But rises were limited by a growing conviction that the country's strong economic performance will lead to higher interest rates in the short term.

Wall Street's overnight gains saw a modest recovery in News Corporation shares, and bargain-hunting by investors seeking value rather than growth helped the All Ordinaries index to a rise of 9.3 points at 3308.8. Shares in smaller gold producers suffered more heavy profit-taking after this year's surge on higher bullion prices. In a listless Jakarta, Indonesia's Composite index rose 0.658 to 534.720.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed on the site.