Nikkei nears five-month closing high

Mon Jun 2, 2008 7:30am BST

[-] Text [+]

TOKYO (Reuters) - Japan's Nikkei benchmark climbed 0.7 percent to a nearly five-month closing high on Monday as Mizuho Financial Group and other financials surged on expectations of higher earnings and growing optimism that the credit crisis is fading.

Additional upward impetus came from Sony and other exporters rising on a slightly weaker yen, with money also flowing into stocks from the Japanese government bond market after JGB futures plunged.

The Nikkei gained over 100 points to 14,440.14, its highest close since January 9. The broader Topix was up 1.2 percent at 1,425.10.

(Reporting by Elaine Lies;)

Credit headwind

News headlines speak of recovery, but financing is still a big problem in Germany. The dearth of credit to tide firms over is frustrating policymakers, who are blaming reluctant banks and there is little agreement on how best to increase lending flows. Full Article