Nikkei flat as volatility in global bonds curb risk appetite, BOJ buying supports

martes 12 de mayo de 2015 22:27 GYT
 

* BOJ buys ETFs on Tuesday
    * Sharp's decision to reduce capital to 500 mln yen gives no
impact to stock

    By Ayai Tomisawa
    TOKYO, May 13 (Reuters) - Japan's Nikkei share average was
little changed on Wednesday as volatility in global bond markets
capped risk appetite, while investors focuses on companies which
released earnings.
    Expectations that the Bank Of Japan would buy stocks when
the market is weak continued to support the broader market. On
Tuesday, the central bank bought 36.1 billion yen of ETFs, which
was announced after the market close.
    The Nikkei 225 was flat at 19,622.73 points by
mid-morning after opening on a weaker note.
    U.S. stocks fell as a recent run-up in global bond yields
continued to unsettle investors, though stocks recovered from
steeper losses after Treasury yields pulled back slightly from
six-month highs. 
    U.S. debt had weakened earlier in the day in line with
German government bonds, which have been under pressure in
recent weeks for reasons that some attribute to optimism that
inflation may have bottomed in the euro region.
    "The Nikkei may remain pressured by uncertainty in the
global market for a while, but the downside should be limited
because of hopes that the BOJ will counter the market's
weakness," said Takuya Takahashi, a strategist at Daiwa
Securities.
    Cyclical shares lost ground, with Toyota Motor Corp 
falling 1.4 percent, Nissan Motor Co dropping 1.6
percent and Canon Inc shedding 0.7 percent.   
    Companies which reported their earnings were in the
spotlight.
    Daikin Industries soared 3.7 percent after it
raised its dividend payout to 60 yen per share from 30 yen per
share for the last fiscal year ended March.
    NKG Insulators jumped 6.0 percent. While its
operating profit forecast for the year through March 2016 was 68
billion yen, in line with the market consensus, however, it
announced a capital spending worth 56 billion yen for the
current fiscal year.
    "An increase in capital spending is likely to be related to
ceramics products for automobiles, and we expect that the
spending is backed up with order increases," SMBC Nikko
Securities analyst wrote in a report.
    A source told Reuters that Sharp Corp intends to
reduce its capital to 500 million yen from more than 120 billion
yen, compared with a previously planned target of 100 million
yen. Shares in Sharp were traversing positive and negative
territory, with traders saying that changing the amount would
not suggest a drastic change in its restructuring plan.
    The broader Topix dropped 0.5 percent to 1,594.97
and the JPX-Nikkei Index 400 declined 0.5 percent to
14,407.15.

 (Editing by Kim Coghill)