Japan stocks at new 15-month high

TOKYO: Japan's Nikkei stock index climbed to a fresh 15-month high Tuesday on gains in the machinery sector, while shares in money-losing Japan Airlines plunged 45 percent amid fears of bankruptcy and removal from the stock exchange.

The Nikkei 225 stock average rose 80.82 points, or 0.8 percent, to 10,879.14, the highest finish since Oct. 3, 2008 when the key index ended at 10,938.14. The broader Topix index added 1.4 percent to 954.13.

"The Nikkei index managed to end higher on gains in resource and machinery-linked shares. These shares rose on optimism over China's robust economy," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.

China's exports surged nearly 18 percent in December after 13 months of declines, helping the Asian country to edge past Germany as the world's biggest exporter.

Among key stocks, shares in Japan Airlines plummeted by 45 percent — the maximum decline allowed — or 30 yen from Friday's close to just 37 yen. Japan's financial markets were closed Monday due to a public holiday.

Investors dumped JAL shares following weekend reports that Asia's biggest airline, known as JAL, could file for bankruptcy as early as Jan. 19, and have its shares taken off the stock exchange.

"With the reports saying JAL could be delisted, investors had no choice but to sell its shares," Sato said. In the morning session, trading in JAL shares was paralyzed due to a glut of sell orders.

Tuesday's finish marked a stunning plunge from JAL's closing price of 213 yen at the beginning of 2009.

Before the market closed, Transport Minister Seiji Maehara held talks with the heads of JAL's three main banks to explain the airline's bankruptcy plan.

During the meeting, the banks — Mizuho Corporate Bank Ltd., the Bank of Tokyo-Mitsubishi UFJ Ltd., and Sumitomo Mitsui Banking Corp. — approved JAL's bankruptcy, Kyodo News agency said, citing unnamed sources.

Officials at the transport ministry and the three banks declined to comment on the report.

Among blue chips, Toyota Motor Corp. — the world's No. 1 automaker — rose 3.9 percent to 4,115 yen. Honda Motor Co. jumped 4.1 percent to 3,315 yen.

Sony Corp. increased 3.8 percent to 2,916 yen. Machinery maker Komatsu Ltd. jumped 5.4 percent to 2,096 yen.

JAL's domestic rival, All Nippon Airways Co., gained 4.2 percent to 295 yen.

In currencies, the dollar was flat at 92.13 yen. The euro slipped to $1.4497 from $1.4514.