Nikkei hits 15-month high

Nikkei average hit a 15-month high on Tuesday,lifted by resource-linked stocks.

Japan8217;s Nikkei average hit a 15-month high on Tuesday,lifted by resource-linked stocks such as Sumitomo Metal Mining Co after strong trade data in China helped boost gold prices.

Japan Airlines Corp was bid sharply lower after Japanese media said the carrier is still short of the two-thirds support it needs from retirees to cut pension payouts,raising the prospect its pension fund will be dissolved in step with a bankruptcy filing.

8220;The impact from JAL8217;s problems on the overall market is limited,but the problems are certainly weighing on investor confidence to push the market much higher,8221; said Kenichi Hirano,operating officer at Tachibana Securities.

The benchmark Nikkei climbed 0.1 per cent to 10,811.25,after earlier climbing as high as 10,827.65,its highest since October 2008.

The broader Topix gained 0.5 per cent to 946.23.

Japanese markets were closed on Monday for a national holiday.

Strong trade data in China,including booming demand for oil and copper,ramped up global risk appetite and helped boost commodity prices.

8220;China8217;s trade data is positive for Japanese stocks,but the stronger yen is likely to weigh on the market and prompt profit-taking at highs. Still,buying on dips will likely provide some support,8221; said Hiroichi Nishi,general manager of equity marketing at Nikko Cordial Securities.

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US stocks zig-zagged on Monday as investors took a breather after a week of gains that pushed the Samp;P 500 to close at fresh 15-month highs,while nervous investors braced for the start of the quarterly earnings reporting season.

Alcoa Inc posted a narrower fourth-quarter loss as aluminum prices inched up,but the result fell short of expectations and its shares dropped in after-hours trade.

RESOURCE STOCKS GAIN

Resource-related stocks gained after gold prices rose more than 1 per cent on Monday,scaling a five-week high of 1,161.50 per ounce,on the back of dollar weakness as traders bet on US interest rates staying low in the immediate future.

Sumitomo Metal Mining,a leading smelter,rose 0.5 per cent to 1,455 yen,with fellow smelter Dowa Holdings gaining 0.7 per cent to 545 yen. Mitsui Mining amp; Smelting added 0.8 per cent to 267 yen.

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Trading house Mitsubishi Corp climbed 2.2 per cent to 2,483 yen,while Mitsui amp; Co jumped 3.9 per cent to 1,470 yen.

All Nippon Airways,Japan8217;s second-largest airline,shot up 5.7 per cent to 299 yen in expectations of increased business in the wake of a Japan Airlines restructuring,a market player said.

But some high-tech exporters lost ground,with chip-tester maker Advantest Corp falling 0.8 per cent to 2,479 yen and Tokyo Electron shedding 1.2 per cent to 5,930 yen.

The dollar was trading around 92.00 yen in early Asia trade. Investors fret about a stronger yen as it curbs exporters8217; profits when they are repatriated.

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JAL was flooded with sell orders,with its price indicated at 37 yen,down 44.8 per cent from Friday8217;s close.

A source with knowledge of the matter has also said that a state-backed fund crafting a restructuring plan for JAL is leaning toward a delisting of the carrier after it files for bankruptcy.