The yen continued to soar against the dollar, rising to 114.37 from 114.39 and also firmed to 162.49 from 162.51 against the euro.

Fuji Heavy Industries gained after it revised its fiscal year 2008 earnings forecast by 63% spurred by increased demand from Russia and China. Preliminary net income forecast for the six months ended September 30 was 7.8 billion-yen. The company also revised upwards net income forecast to 17 billion yen and sales were revised 0.6% up to 1.56 trillion yen for year ending March 31.

Financial stocks gained after the alliance between China based Citic Securities and the U.S. based Bear Stearns breathed optimism in the financial markets. Mitsubishi UFJ Financial Group gained 1.85%, Mizuho Financial Group edged up 0.65% and Sumitomo Mitsui Financial Group 2.28%.

Technology stocks rose on bullish sentiment stocked by Nikkei reports Hitachi Limited would withdraw from the personal computer business thereby increasing the profitability of other computer makers. Sony Corp and Toshiba jumped 0.19% and 1.77% respectively on the news.

Seiyu Limited, discount supermarket operator, jumped to the daily limit of 30 yen to 117 yen after Wal-Mart said that it will offer 140 yen per share for the rest of the 50% of the company that it does not own. The struggling supermarket chain has failed to generate profit and sustain market share.

All Nippon Airways would be offering 10% to 15% cheaper flights via Tokyo, Osaka and Nagoya, in the fiscal year 2009 starting April 1st of 2008. Furthermore it will cut seven direct routes linking cities to increase the percentage seats filled during flights.