Japanese Stocks Surge on Government Support Hopes, U.S. Sales

Japanese stocks jumped, lifting the Topix from the lowest in a quarter century, on speculation the government will buy shares and better-than-expected retail sales in the U.S. heralds a rebound in the world’s biggest economy. Mitsubishi UFJ Financial Group Inc., Japan’s No. 1 listed bank, gained 5.6 percent after the Nikkei newspaper said the government is considering purchasing shares on the open market to prop up prices. Inpex Corp., Japan’s biggest oil explorer, climbed 4 percent after crude surged yesterday. Olympus Corp., a maker of digital cameras and endoscopes, surged 8.8 percent. “We are looking for a rally by the end of the year,” John Vail, head of global strategy in Tokyo at Nikko Asset Management Co., which manages $93 billion in assets globally, said in an interview with Bloomberg Television. If the government broadens its efforts “into buying stocks from the general market, that would help the market a great deal.” The Nikkei 225 Stock Average gained 315.98, or 4.4 percent, to 7,514.23 at the 11 a.m. break in Tokyo. The broader Topix index added 18.83, or 2.7 percent, to 719.76, after slumping to the lowest level since December 1983 yesterday. For the week, the Nikkei headed for a 4.8 percent jump, the best since the period ended Nov. 18. The Topix was set for a 0.2 percent slip. The Standard & Poor’s 500 Index soared 4.1 percent in New York for a three-day, 11 percent advance. Bank of America Corp. followed Citigroup Inc. and JPMorgan Chase & Co. in saying it was profitable in the first two months of 2009.