Nikkei jumps on Wall St gains, massive Japan Post triple-IPO
By Joshua Hunt
TOKYO Nov 4 (Reuters) - Japanese stocks rose on Wednesday morning, buoyed by gains on Wall Street and a strong debut by three Japan Post shares, which surged as investors rushed to get a piece of the group's $12 billion initial public offering.
The Nikkei share average jumped 2.1 percent to 19,073.63 during mid-morning trade.
"The Japan Post IPO has performed as well as expected this morning and on top of that we've seen a real sentiment boost based on the monster rally in the U.S.," said Gavin Parry, managing director at Parry International Trading.
"Some really nice corporate earnings have also helped us push through that 19,000-point resistance level, so the question now is whether we can reach the point where that becomes the support level."
Shares of Japan Post Holdings Co opened at 1,631 yen against its initial public offering price of 1,400 yen, while Japan Post Bank Co opened at 1,680 yen versus its IPO price of 1,450 yen. The final share in the triple-IPO, Japan Post Insurance Co, opened at 2,929 yen against an IPO price of 2,200 yen.
The shares, which raised 1.4 trillion yen ($11.6 billion) for Japan's government in its biggest privatisation since the 1980s, continued to gain during heavy mid-morning trade. Japan Post Holdings climbed 17 percent, while Japan Post Bank gained 15 percent and Japan Post Insurance soared 48 percent.
Japan's insurance sector added 4.3 percent during mid-morning trade, lifted by Japan Post as well as Dai-ichi Life Insurance and T&D Holdings Inc, which each gained 5.2 percent.
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