Nikkei edges up but investors still bewitched by Greece

lunes 29 de junio de 2015 22:07 GYT
 

* Market wants to wait until Greece's referendum - traders
    * China market moves focused - traders
    * Shionogi soars after Credit Suisse's rating hike

    By Ayai Tomisawa
    TOKYO, June 30 (Reuters) - Japan's Nikkei share average
edged up on Tuesday after posting its second-biggest daily drop
this year, but the market remained concerned after a collapse in
Greek bailout talks intensified fears that the country could
exit the euro zone. 
    The Nikkei share average rose 0.2 percent to
20,159.18 by mid-morning after tumbling 2.9 percent on the
previous day, the biggest daily drop since January.
    Greece will not pay a 1.6 billon euro loan instalment due
the International Monetary Fund on Tuesday, a Greek official
told Reuters, after talks between Athens and its creditors broke
down over the weekend when Prime Minister Alexis Tsipras called
a surprise referendum on the austerity plan. 
    "Both bullish investors and bearish investors have the same
scenario about Greece's fate, but in any event, the country
needs to be rescued and cannot survive on its own," said
Takatoshi Itoshima, chief portfolio manager at Commons Asset
Management.
    He said that as long as there is no contagion to other parts
of Europe, there should be no panic in the market.
    "Right now most people want to stay on the sidelines and see
the referendum (on July 5)."
    Traders said investors are also cautious on Chinese markets,
which have plunged more than 20 percent in the last few weeks,
posing a fresh threat to the country's cooling economy.
    Exporters bounced back, with Honda Motor Co rising
0.5 percent and Nissan Motor Co gaining 0.9 percent.
    Outperforming the market was Nitori Holdings, which
jumped 5.1 percent after the discount furniture store operator
reported better-than-expected earnings for the March-May
quarter. 
    Its sales rose 1.7 percent to 119.2 billion yen, while its
operating profit dropped 5.3 percent on year to 20.8 billion due
to increased personnel cost, but was still above the company's
estimate. 
    Shionogi & Co soared 7.7 percent and was the third
biggest percentage gainer on the main board after Credit Suisse
hiked its rating to 'outperform' from 'neutral'.
    Credit Suisse's analyst wrote in a report that even as the
cholesterol-lowering drug Crestor approaches its U.S. patent
expiry date in July 2016, Shionogi is expected to report sales
and earnings growth for three consecutive years starting from
this fiscal year ending March 2016.
    The broader Topix gained 0.1 percent to 1,626.76 and
the JPX-Nikkei Index 400 rose 0.2 percent to
14,684.88.

 (Editing by Kim Coghill)