TOKYO, Aug 13 - Tokyo stocks climbed to a two-week high by mid-session on Wednesday, led by steel maker JFE Holdings Inc <5411.T> and other materials firms following a surprisingly strong reading on growth in the Japanese economy the day before.
Investors were also encouraged after the Federal Reserve's announcement it would keep U.S. interest rates at 45-year lows helped the Dow Jones industrial average <.DJI> rise one percent on Tuesday. "The correction is finally over and the market has embarked on a new uptrend," said Zenshiro Mizuno, senior managing director at Marusan Securities. "New York is rising and foreigners are buying again. The Nikkei will soon test its July high." The Nikkei average <.N225> rose 1.36 percent or 129.62 points to 9,694.43. It earlier marked a two-week high of 9,713.89, five percent north of last Thursday's five-week low and drawing closer to a 2003 intraday high of 10,070.11 hit on July 10. The TOPIX index <.TOPX> put on 1.37 percent to 947.36. Both indices were poised to finish higher for a fourth straight session.
Investors poured money into big banks such as UFJ Holdings Inc <8307.T>, steel makers and other sectors heavily affected by swings in the economy after data on Tuesday showed Japan's April-June gross domestic product expanded by 0.6 percent from the previous quarter. UFJ, Japan's fourth-largest banking group, jumped 6.17 percent to 258,000 yen, while steel giant JFE rallied 6.84 percent to 2,265 yen and chemical manufacturer Sumitomo Chemical Co Ltd <4005.T> tacked on 5.97 percent to 373 yen.//