Tokyo stocks rise again in nine-day rally

Tokyo stocks squeaked out another positive session Wednesday with the benchmark index marking its ninth straight day of gains, as a weak yen offset falls on Wall Street.

The Nikkei 225 at the Tokyo Stock Exchange hit a fresh 15-year high as it added 0.17 percent, or 35.10 points, to finish at 20,472.58. The Nikkei is up more than four percent since the latest rally started.

The broader Topix index of all first-section shares rose 0.11 percent, or 1.76 points, to 1,661.33.

Despite profit-taking and a weak lead from US shares, the Japanese market won support from the cheap yen, which is a plus for exporters.

In Asian forex markets, the dollar was near an eight-year high at 123.06 yen, slightly off 123.09 yen in New York and down from its rise above 123.30 yen earlier Tuesday, its highest level since mid-2007.

The yen's descent comes after the already weak currency boosted profits at many big firms in Japan during the latest earnings season, and analysts said it could lead to companies inflating their rosy forecasts.

"At this level in the dollar-yen, we could see earnings being revised upward for companies across the board," said Ichiro Yamada, general manager of equities at Fukoku Mutual Life Insurance.

The dollar got a boost as figures on Tuesday showed improvements in US consumer confidence, home sales and prices, and orders for core industrial goods, highlighting a pick-up in growth in the world's biggest economy after a weak first-quarter.

The latest results -- along with comments Friday from Federal Reserve chief Janet Yellen that she expects to hike interest rates "at some point this year" -- put talk of a rate increase back on the table, which is a plus for the dollar.

"Whether it's durable goods, housing data or consumer confidence, US data are all above market expectations," Hiroichi Nishi, a manager at SMBC Nikko Securities, told Bloomberg News.

In Tokyo, Toyota shares gained 0.53 percent to close at 8,496 yen, lender Mizuho Financial Group gained 2.40 percent to 256 yen while Fuji Heavy Industries, which relies on North America for more than half its revenue, jumped 4.34 percent to 4,689.5 yen.

On the negative side, Sony shares fell 2.03 percent to 3,828.5 yen, while Japan's biggest bank Mitsubishi UFJ slipped 0.46 percent to 896.6 yen.

Wall Street fell sharply Tuesday as the dollar strengthened following the solid US economic data and worries over cash-strapped Greece's talks with creditors.

The Dow Jones Industrial Average dropped 1.04 percent while the broad-based S&P 500 fell 1.03 percent and the Nasdaq lost 1.11 percent.

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