Nikkei rises after Greece offers new proposals to avert default

domingo 21 de junio de 2015 22:23 GYT
 

* Record short-selling ratio may invite buying near term -
traders
    * Taisei and Obayashi soar on report about nuclear project
in Turkey

    By Ayai Tomisawa
    TOKYO, June 22 (Reuters) - Japan's Nikkei share average rose
on Monday morning on hopes that 11th-hour proposals from Greek
Prime Minister Alexis Tsipras would appease its creditors and
help avert a default.
    The Nikkei share average advanced 0.8 percent to
20,339.75 in midmorning trade after opening flat.
    After months of wrangling and with anxious depositors
pulling billions of euros out of Greek banks, Tsipras's leftist
government showed a new willingness this weekend to make
concessions that would unlock frozen aid to avert default.
 
    Some traders believe that buyers would find opportunities in
a market that has run up huge short positions, with the Nikkei
falling for the third week in a row last week. 
    Data compiled by the Tokyo Stock Exchange last week showed
that the short selling ratio on the bourse climbed to a record
high of 38.3 percent of total traded value as of last Thursday. 
   
    "This indicates that they may buy back in the near term if
overseas concerns ease, but it probably won't happen in one day
and sentiment may remain fragile at least until the end of the
week," said Hikaru Sato, a senior technical analyst at Daiwa
Securities. "Developments in Europe are likely to determine the
mood."
    Exporters were higher, with Honda Motor Co rising
1.4 percent, Canon Inc gaining 1.1 percent and Komatsu
Ltd adding 2.0 percent.
    Banks were also attracting buyers. Mitsubishi UFJ Financial
Group gained 2.7 percent and Mizuho Financial Group
 advanced 1.6 percent.
    Contractors Taisei Corp rose 2.4 percent and
Obayashi Corp jumped 3.6 percent after the Nikkei
business daily reported that they will join a nuclear power
plant project in Turkey led by the Japanese and Turkish
governments. 
    The broader Topix gained 0.8 percent to 1,643.68 and
the JPX-Nikkei Index 400 also tacked on 0.8 percent
to 14,834.24.
        

 (Editing by Shri Navaratnam)