Nikkei on track for biggest daily gain since June 2013 on upbeat U.S. data, GPIF

domingo 19 de octubre de 2014 23:03 GYT
 

* News GPIF's raising Japan stock allocation to 25 pct
underpins sentiment
    * Investors scoop up battered exporters as yen weakens
    * Gains may be short-lived as market still spooked-analyst

    By Ayai Tomisawa
    TOKYO, Oct 20 (Reuters) - Japan's Nikkei share average
surged 3.3 percent on Monday and was on track to post its
biggest daily rise in more than a year as investors took heart
from upbeat U.S. data and as the weaker yen lifted exporters
such as Toyota Motor Corp and Honda Motor Co.
    Also underpinning the market was news that Japan's $1.2
trillion public pension fund will likely raise its allocation to
domestic stocks to about 25 percent. 
    People familiar with the process told Reuters that a
weighting in the middle of the 20-30 percent range is the main
proposal for the coming reallocation and is under final
discussion within GPIF. 
    The Nikkei share average rose 486.04 points to
15,018.55 by the midday break, recovering most of the losses
posted last week. 
    Upbeat U.S. consumer sentiment gave relief to investor
sentiment and lifted risk appetite. The Thomson
Reuters/University of Michigan index of consumer sentiment
unexpectedly rose in early October to its highest level since
July 2007. Separate data showed groundbreaking for new homes
rose more than expected last month. 
    Traders said investors were scooping up recently battered
stocks after the Nikkei tumbled 5 percent last week on concerns
about faltering global growth and the stronger yen.
    "Selling in some of the stocks was overdone. Investors are
buying them on the dips," a trader at a Japanese brokerage said.
    But some analysts remained cautious, and said any rebound
may be short-lived.
    "With Halloween just around the corner, the market was
spooked by 'ghosts' and these ghosts will probably stick around
longer," said Hiroyuki Nakai, chief strategist at Tokai Tokyo
Research Center, citing persistent concerns about the sputtering
European economy, worries about what could happen after the U.S.
Federal ends tapering and the Ebola epidemic.
    Toyota jumped 5.0 percent, Honda soared 3.1 percent and
Panasonic Corp surged 3.8 percent after the dollar rose
0.2 percent at 107.18 yen, putting further distance
between a five-week low of 105.90 hit the previous week.
    NEC Corp rose 4.9 percent after the Nikkei business
daily reported that its operating profit for the April-September
period was likely to be about 20 billion yen, compared to just
shy of 400 million yen in the previous year.
    The broader Topix jumped 3.5 percent to 1,217.91,
and the new JPX-Nikkei Index 400 gained 3.5 percent
to 11,083.19.

 (Editing by Eric Meijer & Kim Coghill)