The Nikkei Gaps Up Lifting Other Asian Markets

“Asian stocks rose as Japanese exporters advanced after the yen weakened and increased sales of new homes in the U.S. added to signs the world’s biggest economy is recovering.

Nissan Motor Co. (7201), a Japanese carmaker that gets 79 percent of sales overseas, climbed 1.9 percent. SK Hynix Inc., the world’s second-largest maker of computer memory chips, rose 1.2 percent in Seoul after posting profit that beat analyst estimates. Pharmaxis Ltd. plunged 43 percent to a record low after the Australian pharmaceutical company said it won’t proceed with a regulatory submission for a new drug after clinical trials were unsuccessful.

The MSCI Asia Pacific Index (MXAP) gained 0.5 percent 137.62 as of 10:08 a.m. in Tokyo, heading for its highest close since April 12. More than three shares rose for each that fell on the gauge. The measure climbed 5.8 percent this year through yesterday amid signs the U.S. economy is recovery as Japanese equities rallied on speculation the Bank of Japan will step up efforts to end deflation.

“The economy in the U.S. is hitting that sweet spot where it’s not bad enough to worry investors but not strong enough for theFederal Reserve to start withdrawing stimulus,” said Stan Shamu, a markets strategist at IG Markets Ltd. in Melbourne, a provider of trading services in currencies and equities. “It’s positive for the global economy. There are still heightened expectations of central-bank action.”

Weaker Yen

The Nikkei 225 Stock Average increased 1.3 percent, heading for its highest close since June 2008, as the yen dropped for a second day against the dollar. A weaker yen boosts the value of overseas income at Japanese exporters when repatriated….”

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