Japan's Nikkei gains on relief over Deutsche, financials bounce
By Shinichi Saoshiro
TOKYO Oct 3 (Reuters) - Japanese stocks rose on Monday as global risk asset markets took heart from easing concerns over Deutsche Bank, triggering a relief bounce in financial sector shares.
The Nikkei rose 1.2 percent to 16,640.70 after losing 1.5 percent on Friday.
Tokyo shares received an early lift from Friday's gains on Wall Street.
The S&P financial sector saw its best performance in roughly two months on Friday, with Deutsche Bank shares surging on a report that the German lender was close to a more favourable settlement with U.S. authorities over the sale of toxic mortgage bonds.
"The latest developments regarding Europe's banking sector has helped lift the market. But while an element of uncertainty has been removed, it has not provided fresh direction," said Soichiro Monji, chief strategist at Daiwa SB Investments.
"There's a bit of fatigue in the market towards central bank monetary policy and it will likely look to economic indicators for incentives this week."
The Nikkei showed little reaction to the Bank of Japan's tankan survey, which revealed that confidence among big Japanese manufacturers was flat in the three months to September and service-sector sentiment worsened to its lowest in nearly two years.
Tokyo's bank index was up 1.6 percent after sliding 2.3 percent on Friday when jitters over Deutsche Bank weighed on the sector. Continuación...