CORRECTED-Nikkei rises on global market gains; Rakuten tumbles on share-issue plan
(corrects 2nd para, losses made in last two days, not the first two days of this week) * U.S. yield moves post-jobs data will be in focus - traders * Rakuten announces public offering through new shares By Ayai Tomisawa TOKYO, June 4 (Reuters) - Japan's Nikkei share average rose on Thursday morning after U.S. and European shares strengthened, but Rakuten Inc tumbled after announcing plans to issue $1.6 billion in new shares. While the market has recouped more than half of the 96 points lost during the last two days, investors are avoiding big bets on caution amid volatility in global bond yields, traders said. They also said that investors are focused on U.S. jobs data due on Friday for hints on the timing of a U.S. rate hike. The Nikkei 225 rose 0.4 percent to 20,545.54 at the midday break, still hovering near its 15-year highs. U.S. Treasury yields rose in tandem with their European counterparts as European Central Bank President Mario Draghi said the markets should get used to periods of higher volatility. That sent German Bund yields to their highest level since October. "Rising global yields probably won't affect Japanese stocks directly, but a negative impact is possible if overseas stock markets fall," said Isao Kubo, equity strategist at Nissay Asset Management. He said the way U.S. yields move after the unemployment figure comes out on Friday could trigger profit-taking in the Japanese market, which has risen sharply over the past two weeks. "If the U.S. economy is proven to be strong and the U.S. yields rise, it will be time for the Japanese market to see a correction," Kubo said. A 12-day Nikkei winning streak that was broken on Tuesday was fuelled by hopes for economic recovery and better corporate profits as well as higher shareholder returns and a weakening yen. Financial stocks regained ground after falling earlier this week. Mitsubishi UFJ Financial Group rose 1.4 percent and Mizuho Financial Group 1.1 percent. GungHo Online Entertainment Inc soared 4.5 percent after the Nikkei business daily said the company will apply in June to be listed on the Tokyo Stock Exchange's first section. It is currently on the Jasdaq market, which lists start-up companies. Bucking strength, Japanese online retailer Rakuten dived 5.7 percent after saying it would issue new shares to raise about 188 billion yen ($1.5 billion), and use 90 percent of the proceeds for debt repayment. The broader Topix gained 0.4 percent to 1,675.89 and the JPX-Nikkei Index 400 advanced 0.3 percent to 15,113.27. (Editing by Richard Borsuk)
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