Japanese stocks rose to a 15-year high intraday Thursday, as investors took a renewed interest in companies that have shifted their focus back to growth and efficiency.
The Nikkei 225 index improved 65.62 points, or 0.4%, to 18,264.79, its highest intraday level since May 2000.
There are signs that Japanese companies, ranging from Canon Inc. to Sony Corp. are starting to tap into their large cash piles, reinforcing their core businesses and buying out firms for expansion.
These companies finally appear to be leaving behind the uncertainty that followed the 2008 global financial crisis, and the aftermath of the March 2011 earthquake and tsunami disaster.
Domestic firms are also getting a tailwind from Prime Minister Shinzo Abe’s economic policies, which have weakened the yen and generated mild inflation.
The yen has lost about a third of its value since late 2012 when Abe started campaigning for the nation’s leadership.
Notable blue chips rose to multiyear highs. Toyota Motor Corp. rose to an eight-year high. Industrial robot-maker Fanuc Corp. rose to a record high.
Earlier in February, cash-rich Canon announced it will buy Axis AB, a Swedish network video solutions provider, for around $2.8 billion U.S.
Electronics and entertainment giant Sony said Wednesday it would spin off its audio and video units to focus on entertainment and image-sensor businesses.
Fanuc said Monday it would invest more than $1 billion U.S. in new factories and research facilities at home.
Sony shares gained 1.7%. Since late 2012, they have nearly quadrupled. Canon shares have gained 56%.
In other markets;
Markets in Hong Kong, Shanghai, Taiwan, Korea and Singapore were closed for the Lunar New Year
New Zealand’s NZX 50 index settled 15.13 points, or 0.3%, to 5.726.23
The S&P/ASX index dipped 11.46 points, or 0.2%, to 5,904.23
