Nikkei rises on Wall St, China's easing; Sony soars on mid-term plan

lunes 24 de noviembre de 2014 22:10 GYT

* Sony jumps to 3 1/2-year high on growth hopes, broker
    * Key defensive stocks attract buying on hopes Japan market
stays strong

    By Ayai Tomisawa
    TOKYO, Nov 25 (Reuters) - Japan's Nikkei share average rose
on Tuesday morning as Wall Street's gains and China's interest
rate cut encouraged investors to play catch-up after a long
    Sony Corp jumped 6.2 percent to a 3 1/2-year high
and was the fourth-most traded stock by turnover after it said
it expects revenue for its electronic devices division to rise
by up to 69 percent over the next three years. 
    JPMorgan raised its rating on Sony to 'overweight' from
'neutral', saying that bad news about its mobile phone and TV
businesses was already priced in, and its gaming and network
services operation was expected to generate sustainable profits.
    Investors chased the overall market higher after China cut
interest rates unexpectedly on Friday. 
    The Nikkei 225 rose 0.3 percent to 17,414.60 in
mid-morning trade after opening at 17,490.39, moving closer to a
seven-year high of 17,520.54 marked earlier this month. 
    Meantime, the broader Topix is refreshing its
six-year highs, rising 0.6 percent to 1,408.20.
    "Bellwether defensive stocks such as Mitsubishi UFJ
Financial Group are being bought on good sentiment surrounding
the Japanese market," said Hikaru Sato, a senior technical
analyst at Daiwa Securities. 
    He said it is believed the Japanese market will remain 
strong thanks to the weak yen, and Prime Minister Shinzo Abe
calling an election to seek a fresh mandate to reform the
struggling economy.
    "While the 17,500-mark can be an immediate resistance, there
are few reasons to sell now," Sato said.
    MUFG rose 1.9 percent to a 10-month high and was
the fifth most-traded stock by turnover, while other financials
were also stronger, with Sumitomo Mitsui Financial Group
 adding 1.2 percent and Nomura Holdings gaining
0.6 percent.
    Exporters were steady as the dollar managed to edge up to
118.27 yen nearing a seven-year high of 118.98. Toyota
Motor Corp rose 1.4 percent and Honda Motor Co 
added 1.6 percent.
    The new JPX-Nikkei Index 400 advanced 0.5
percent to 12,840.42.

 (Editing by Eric Meijer)