English/Nat
Japanese stocks finished sharply higher on Thursday on expectations the Japanese government may come up with new measures to stimulate economic growth.
Investors were returning to the market for the first time this week after the string of national holidays.
The U-S dollar was higher against the yen and the country's main stock index, the Nikkei Stock Average rose 3-point-59 per cent, to close at 17,300-point-61 points.
Renewed hopes for a recovery in Japan's economy following Monday's summit between U-S President Bill Clinton and Prime Minister Keizo Obuchi in the U-S helped boost Japanese stocks on Thursday.
The Nikkei Stock Average closed at 17,300-point-61 points in the first day of trading that followed the nation's "Golden Week" holidays.
That's up 599-point-08, or 3-point-59 per cent from last Friday.
After meeting with Clinton in Washington on Monday, Obuchi said he was determined to ensure a successful revitalisation of the Japanese economy, which remains in its worst recession since World War II.
There are also indications that top officials in Japan's ruling party are studying a supplementary budget of spending to stimulate the economy.
SOUNDBITE: (English)
"There is tremendous enthusiasm amongst Japanese investors that the Japanese government is finally doing the correct policy. Out of the Obuchi-Clinton Summit meeting came a clear plan for additional large scale pump priming measures. Instead Obuchi is focusing on supply side measures giving tax credit and other benefits for companies to become meaner and leaner competitors. Share holders will win in this environment."
SUPER CAPTION: Jasper Koll, Economist in Tokyo
Traders said buying from public funds also helped to lead the Tokyo market higher in the afternoon session.
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