Nikkei rallies over 2 pct on ECB optimism, Apple earnings; Takata bounces

martes 21 de octubre de 2014 21:50 GYT

* Apple-linked shares soar on better-than-expected earnings
    * Takata recoups losses but it may take time to restore
trust - analyst

    By Ayai Tomisawa
    TOKYO, Oct 22 (Reuters) - Japanese stocks soared more than 2
percent on Wednesday, as the prospect of the European Central
Bank taking further measures to support a faltering economy and
strong gains in Apple Inc -related shares eased
concerns over slowing global growth. 
    Air bag maker Takata Corp also bounced strongly, 
recouping some of the deep losses of the previous day after it
said any additional costs of repairs for the 4.74 million
vehicles subject to U.S. safety regulators would be minimal.
    The Nikkei share average added 299.27 points to
15,104.31 in mid-morning trade after sliding 2.0 percent on the
previous day.
    Sources told Reuters on Wednesday that the European Central
Bank is considering buying corporate bonds on the secondary
market and may decide on the matter as soon as December with a
view to begin purchases early next year. 
    "The news triggered bargain hunting as Japanese shares have
fallen to levels which priced in the worst case scenario," said
Toru Ibayashi, executive director at UBS Wealth Management,
referring to fears that Europe's economy would fall back into
    Ibayashi expects the Nikkei to recover its losses posted
earlier this month over the coming weeks.
    "Japanese corporate earnings are seen rising and there are
positive factors such as pension fund buying in the market. I've
been suggesting that investors buy Japanese shares at their lows
and sell at their highs this year, and now is the time to buy."
    The Nikkei has shed 7.0 percent since the beginning of this
month, hurt by fears of recession in the euro zone, slowing
growth in China and geopolitical tensions in the Middle East.
    Apple's Japanese suppliers surged, with Foster Electric Co
 rising 3.4 percent and Japan Aviation Electronics
Industry Ltd gaining 3.5 percent after the maker of
iPhone posted stronger-than-expected quarterly earnings.
    Takata jumped 10 percent on its reassurance about limiting
costs from recalls of its airbags which sent the stock diving 23
percent on Tuesday to the lowest since March 2013.
    Toyota Motor Corp recalled 247,000 cars, SUVs and
pickup trucks in the United States on Monday because of
potentially defective front passenger air bag inflators from
Takata that can rupture and spray metal shrapnel, according to
U.S. safety regulators.
    That raised the number of vehicles affected by regional
recalls launched in June by several automakers due to the Takata
air bags to more than 4.5 million. 
    "Even though the stock is recouping some of the previous
losses, I would not feel comfortable holding the stock in my
portfolio yet," said Yoshihiro Okumura, general manager at
Chibagin Asset Management. "The stock price will be swayed by
upcoming news reports, and it will take time to rebuild trust."
    The broader Topix gained 1.6 percent to 1,224.99,
and the new JPX-Nikkei Index 400 advanced 1.6
percent to 11,144.58.

 (Editing by Shri Navaratnam)