Japanese stocks: Nikkei 'overheats' to 7-month high

TOKYO - The Nikkei average ended at a fresh 7-month high yesterday, extending gains into a fourth session as investors snapped up Fujitsu and other issues likely to benefit from a global economic recovery.

"Investors are picking up laggards and taking profits in shares that have overshot a bit as they go," said Zenshiro Mizuno, general manager at Marusan Securities. "Technically, we are overheated, but this market is strong."

The Nikkei closed up 0.28 per cent to 11,919.30 after jumping to 12,034.04 in morning trade - its highest day level since August 9 and about 28 per cent above an 18-year low five weeks ago.

Several high-tech issues such as computer and chip-maker Fujitsu extended gains, mainly on short-covering, after a 2.55 per cent rally in the Nasdaq underlined hopes of an economic recovery in the United States and at home.

Fujitsu perked up 6.15 per cent to 1087 ($19.65).

Most top banks advanced on firmer stocks, which reduce latent losses on their huge shareholdings. Mizuho Holdings, the world's largest bank by assets, gained 3.58 per cent to 376,000 ($6799).

- NZPA