Nikkei bounces as MSCI review supports sentiment, BOJ eyed

martes 10 de junio de 2014 22:41 GYT
 

* Shares bought back after MSCI keeps rival South Korea,
Taiwan shares in EM
    * Market cautious after Nikkei trades above 15,000 - analyst
    * Large cap shares lead gains
    * Seven & i rises after media reports of strong earnings in
March-May

    By Ayai Tomisawa and Hideyuki Sano
    TOKYO, June 11 (Reuters) - Japanese shares bounced off a
one-week low on Wednesday, supported by news that Japan will
retain its status as the only developed market in the region in
MSCI stock indexes, checking  any potential knee-jerk rotation
out of Tokyo equities. 
    The Nikkei gained 0.3 percent to 15,037.40 having
recovered almost a half of its 0.9 percent loss the previous
day, though it still kept some distance from a three-month high
of 15,206.57 hit on Monday.
    Tokyo shares were helped after equity index provider MSCI
said South Korea and Taiwan indexes will be removed from its
review list for reclassification to developed markets, keeping
them in the emerging markets classification.  
    Traders said Japanese shares were bought back by the players
who had bet that Tokyo equities would take the brunt of
rebalancing if Korean and Taiwanese shares were reclassified to
developed markets.
    Still, the gains were limited as investors remained cautious
after a strong rally since late May, which was helped by
improving domestic earnings and overseas economic conditions. 
    "People are cautious about chasing the market higher as
Japanese stocks rose sharply in a short period of time," said
Isao Kubo, equity strategist at Nissay Asset Management, adding
that the index may hover near the psychologically important
15,000 mark in the near term.
    Large-cap shares led gains, with the Topix Core 30 
rising 0.5 percent. Japan Tobacco gained 1.5 percent
and NTT rose 2.0 percent.
    Bank shares maintained their upbeat tone of the past few
weeks, with Mitsubishi UFJ Financial Group hitting a
three-month high. It last traded up 0.8 percent.
    Retail chain operator Seven & I Holding rose 1.0
percent, spurred by a local media report that its operating
profits in the quarter to May rose about five percent from the
previous year, raising hopes of solid sales after the national
sales tax hike in April.
    Indeed, anecdotal evidence suggesting the Japanese economy
would be able to weather the national sales tax -- to 8 percent
from 5 percent -- has also supported sentiment in the past
month. 
    "Focus falls on a positive inflection in Japan's earnings
revision momentum. We expect this to come from August/September,
as companies and analysts prepare for the mid-fiscal year
reporting season," Jesper J Koll, director of Japan equity
research at JPMorgan.
    Still, with many investors eying more solid proof,   
overall trade volume was slow, as has been the case in recent
weeks.
    Traders said investors were looking ahead to the outcome of
the Bank of Japan's two-day policy meeting that ends on Friday.
The central bank is expected to keep monetary policy steady and
may slightly revise up its assessment on overseas growth.
 
    On Wednesday, exporters were higher as the dollar held
steady at 102.38 yen, not far from a one-month high of
102.80 touched last week. Toyota Motor Corp gained 0.7
percent, Advanst Corp added 2.9 percent and Panasonic
Corp advanced 0.4 percent.   
    The broader Topix added 0.5 percent to 1,235.15,
while the new JPX-Nikkei Index 400 advanced 0.5
percent to 11,246.22.

 (Editing by Shri Navaratnam)