Nikkei gains helped by strong U.S. growth; parliament in focus

domingo 28 de septiembre de 2014 22:02 GYT
 

* U.S. GDP underpins sentiment
    * Parliament session may provide catalyst - analysts
    * SoftBank's M&A news has limited impact on stock

    By Ayai Tomisawa
    TOKYO, Sept 29 (Reuters) - Japan's Nikkei share average rose
on Monday morning after the weak yen supported sentiment, while
risk taking was buoyed after the U.S. economy grew at its
fastest pace in 2-1/2 years in the second quarter.
    The Nikkei share average gained 0.5 percent to
16,310.63 in mid-morning trade after falling 0.9 percent on
Friday.
    "There is more upside to the Japanese market considering its
valuations. There are major events this week so investors are
cautiously optimistic," said Shigemitsu Tsuruta, senior
strategist at SMBC Friend Securities, adding that long-term risk
appetite should be supported by a U.S. economic recovery and the
weak yen for the time being.
    He said that for this week, gains may be limited as
investors want to see U.S. jobs data due on Friday before they
take more bets.
    The U.S. economy grew at its fastest pace in 2-1/2 years in
the second quarter with all sectors contributing to the jump in
output in a bullish signal for the remainder of the year.
 
    The dollar added about 0.1 percent to 109.36 yen,
nearing last Friday's six-year peak of 109.54 yen.
    Exporters were strong, with Honda Motor Co rising
0.6 percent, Advantest Corp soaring 2.7 percent and
Canon Inc advancing 0.8 percent.
    SMBC Friend's Tsuruta added that an extraordinary Diet
session during which the ruling parties hope to pass bills
reinvigorating local economies starting on Monday could provide
a catalyst to the market.
    "Depending on bills being taken up, stocks related to
related areas may rise such as robotics," Tsuruta said.
    News that SoftBank Corp was in talks to acquire
DreamWorks Animation <SKG DWA.O> provided little reaction to the
telecom giant's stock price as investors have yet to digest the
implication of the reported merger. 
    SoftBank's shares were down 0.9 percent, easing from
positive territory earlier.
    "SoftBank's core business is mobile communications. It's not
clear what the company wants to do in the animation area," said
Mitsushige Akino, chief fund manager at Ichiyoshi Asset
Management.
    Bucking the strength, Aeon Co fell 1.8 percent
after the Nikkei business daily reported that the supermarket
operator's operating profit in the March-August period likely
dropped by 40 percent on year to about 42 billion yen.
    The broader Topix added 0.5 percent to 1,338.35, and
the JPX-Nikkei Index 400 gained 0.5 percent to
12,177.83.
    

 (Editing by Jacqueline Wong)