5:00 AM New York, 7:00 PM Tokyo – Stocks in Japan closed higher on the optimistic view of the economy and a rise in industrial production. The yen strength prompted more calls to lower the currency and the continuation of loose monetary policy.

Japanese stocks gained on speculation that the Bank of Japan will take measures to rein in a strengthening yen and industrial production increased in January. Prime Minister Hatoyama told parliament that government may take steps to lower the yen.

In Tokyo trading Nikkei 225 Stock Average rose 0.8% or 86.31 to 10,751.26, gaining 3.7% for the week, and the broader Topix Index jumped 0.6% to 936.38.

In the first section of the Tokyo Stock Exchange 17.3 billion shares worth 1.6 trillion yen were traded and in the second section 117 million shares valued at 1.7 billion yen changed hands.

Of the Nikkei 225 index stocks, 161 gained, 48 fell, and 16 were unchanged. Taiheiyo Cement led gainers in the index shares with a rise of 5.1% followed by Nippon Sheet Glass increasing 4.8%.

Jan Industrial Production Climbs 2.7%

Ministry of Economy, Trade and Industry reported today that industrial production index gained 2.7% to 91.1 in January.

Shipments also edged up 2.7% to 92.9, while inventory rose 1.1% to 94.6. The inventory ratio advanced 1.1% to 109.

Hatoyama Seeks Weaken Yen

Nikkei News reported Prime Minister Yukio Hatoyama said today in a parliamentary session government has to take measures against the recent strength of the yen.

According to Hatoyama, there is need for joint international action to push the yen lower.

Separately, Bank of Japan Governor Masaaki Shirakawa noted that the central bank aims to stimulate demand by maintaining an accommodative policy framework.

The BOJ meeting will be held Tuesday and Wednesday next week.

Office Vacancies Rise to 8.66% in February

Real estate broker Miki Shoji Co. said the office vacancy rate in central Tokyo rose 0.41 percentage point to a record 8.66% in February on weak demand.

Central Tokyo is made up of Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards.

Tenants are now opting for cheaper location, while others have been scaling back meeting rooms and other office spaces.

Nikkei Movers

Sumco Corp led the decliners in the Nikkei 225 Stock Average with a loss of 2.4% followed by losses in Nippon Light Metal Company, Ltd of 2.3%, in Credit Saison Co., Ltd of 2.1%, in Fuji Electric Holdings Co., Ltd 2.0% and in Sony Corporation 1.7%.

Taiheiyo Cement Corporation led gainers in the Nikkei 225 Stock Average with a rise of 5.0% followed by gains in Nippon Sheet Glass Company, Limited 4.8%, in Unitika Ltd of 4.1% and in Nisshinbo Holdings Inc 4.0%.

Other Movers