Japan stocks soar on reopening

Japanese stocks opened the year stronger, with the benchmark index jumping to a two-month high today, lifted by optimism over a US economic stimulus plan.

Friday’s rally on Wall Street also buoyed confidence.

In a shortened half-day session, the Nikkei 225 stock average gained 183.56 points, or 2.1%, to 9,043.12, its first finish above the 9,000-point line since November 10.

At the Tokyo Stock Exchange, young female employees dressed in traditional Japanese kimonos joined its New Year ceremony, adding some festive cheer after the Nikkei index plummeted a staggering 42% last year, its steepest one-year drop ever.

“Sentiment was upbeat as investors were hopeful over US economic stimulus measures” under the incoming administration of President-elect Barack Obama, said Yutaka Miura, senior strategist at Shinko Securities Co. Ltd.