Nikkei rises to 1-1/2-week high on weak yen; Sharp soars 7 pct

domingo 27 de marzo de 2016 22:21 GYT
 

* Sharp soars on news it and Foxconn set to sign deal this week

* Foreigners net sellers so far in 2016, trust banks net buyers

By Ayai Tomisawa

TOKYO, March 28 (Reuters) - Japanese stocks rose to 1-1/2-week highs on Monday morning thanks to a weaker yen, while Sharp Corp jumped on expectations it may finally sign a long-delayed takeover deal with its Taiwanese suitor.

As March 31 is the business year-end for a majority of listed companies, the market was also underpinned by investor purchases of stocks before they go ex-dividend later in the day.

The Nikkei gained 0.7 percent to 17,116.76 in midmorning trade after earlier hitting a high of 17,167.88, the highest level since March 17.

Sharp was the highlight of the morning session, soaring 7 percent after sources said the company and Taiwan's Foxconn are set to sign a takeover deal this week after repeated delays.

"Both trading volume and turnover are increasing compared to last week's sessions," said Hiroyuki Fukunaga, chief executive of Investrust.

Still, Fukunaga said the Nikkei's gains will likely be limited until companies release their full-year earnings in May, especially as foreigners have been net sellers of Japanese equities for the 11 past weeks.   Continuación...