ASIA MARKETS: Japan Stocks Rally To Seven-year High After Holiday

By Laura He, MarketWatch

Sydney stocks retreat as unemployment rate rises sharply

Japan stocks rallied Thursday to their highest settlement in more than seven years after returning from a one-day holiday, as a weaker yen supported many export-related shares.

The Nikkei Average climbed 1.9% to 17,979.72, its best closing level since July 2007. The broader Topix also advanced 1.5%.

Meanwhile, the yen (USDJPY) weakened versus the greenback to Yen120.31, compared with Yen118.69 at Tokyo's stock close on Tuesday.

The softer yen boosted many major exporters, as electronics giant Panasonic Corporation jumped 4.1%, auto maker Nissan Motor Co., Ltd. gained 2%, and rival Toyota Motor Corp. rose 1.8%.

Media conglomerate Sony Corporation surged 5.1%, after the company announced before the holiday that it had reached a deal with Walt Disney(DIS) to co-produce a new Spider-Man movie, which will be released in 2017.

Industrial-robot manufacturer Fanuc Corporation also soared 6.2% on news that an U.S. hedge fund run by Daniel Loeb had bought a stake in the company.

Also helping support the sentiment was a more-than-expected rise in Japan's core machinery orders in December.

Meanwhile, Hong Kong and Shanghai stocks also gained, with the Hang Seng Index ending up 0.4%, and the Shanghai Composite Index closing 0.5% higher.

However, Sydney stocks retreated, as Australia's unemployment rate rose sharply in January. The S&P/ASX 200 fell 0.4%. Seoul's Kospi Composite Index also slipped 0.2%.

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