Japan’s Nikkei index sees 8-month high

The Nikkei-225 stock average gained 154.49 points today to close at 10,135.82 points - the first time the index has closed above 10,000 points in eight months.

Among the risers were CSK Holdings, up 19.05% at 500 yen, Nippon Soda, up 11.48% at 476 yen and Yahoo Japan, up 8.29% at 30,550 yen.

Investors were cheered by a revised 5.9% rise in Japanese industrial output in April - the biggest gain in 50 years, while it was revealed that consumer confidence was up in May.

Meanwhile, official data released yesterday showed that Japan’s economy contracted at a revised 3.8% in the first three months of 2009.

Despite the figure being revised downwards, the economy still shrank at a record pace. Meanwhile, the revised figure translates into an annualised contraction of 14.2%.

However, many are now hoping the worst may be over since the April to June quarter is expected to see modest growth - for the first time in five quarters.

The stimulus package which the Japanese Government has implemented is starting to filter through and have a positive impact.

However, Japan is still in its worst recession since World War Two and exports in the world’s second largest economy during the first three months of 2009 plummeted by 26%.

The export-dependent economy, which was once seen as relatively unscathed by the global financial crisis, has been hit by a slump in demand for its products overseas, particularly cars and electrical goods.

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