Nikkei hits 4-week high on Greece election relief, stimulus hopes

lunes 26 de enero de 2015 22:58 GYT
 

* Stable European markets post-Greek election boost
sentiment
    * Investors look to positive earning results
    * Energy-related shares remain under pressure
    * Hoya jumps to 8-year high after rating upgrade

    By Hideyuki Sano
    TOKYO, Jan 27 (Reuters) - Japanese share prices rose to
four-week highs on Tuesday, with some market players reporting a
large pick-up in buy orders from foreign investors after
Greece's election outcome did not disrupt European financial
markets.
    Market players were also betting that stimulus from the
European Central Bank will keep money sloshing around in
financial markets, and that upcoming earning reports will show
Japanese exporters benefitting from a weaker yen while importers
reap a windfall from a sharp slide in oil prices.
    The Nikkei rose 1.6 percent to 17,745.29, its
highest level since late December, extending a recovery from a 2
1/2-month low of 16,592.57 hit on Jan. 16.
    "We appear to be coming out of this period of extreme
volatilities and worries stemming from European deflation and
the policy response to that. There is some positive resilience
in the market," said Stefan Worrall, director of equity cash
sales at Credit Suisse.
     All but one of the Tokyo Stock Exchange's 33 industry
subindexes rose, led by precision machinery manufacturers
 and financials .
    Hoya jumped 5.1 percent to an eight-year high after
JPMorgan lifted its rating to 'overweight' from 'neutral', added
the company to its list of most preferred stocks in Japan and
raised its target price by 46 percent.
    It said Hoya was likely to develop a monopolistic position
in photomask blanks used in extreme ultraviolet semiconductor
lithography.
    Among financials, insurer Tokio Marine Holdings 
rose 2.5 percent while megabank Sumitomo Mitsui Financial Group
 gained 2.0 percent.
    But investors continued to shun energy-related shares as oil
prices flirted with 5 1/2-year lows.    
    Shares of Marubeni Corp fell 1.6 percent, adding to
a near 5 percent slide a day earlier when the trading house
halved its annual profit forecast due to plunging oil and
commodity prices. 
    Rival Mitsui Co Ltd fell 1.5 percent. 
    Some analysts say the fallout from low oil prices could hit
broader market sentiment given that the plight of oil producing
countries could be worsening, with Russia's debt rating
downgraded to junk status. 
    "This is a market powered by the central bank stimulus but
there are risks such as weak oil prices and the fallout that
comes with that. So the market is likely to remain volatile,"
said Norihiro Fujito, senior investment strategist at Mitsubishi
UFJ Morgan Stanley Securities.
    Both the broader Topix and the new JPX-Nikkei Index
400 gained 1.2 percent.
    

 (Additional reporting by Tomo Uetake; Editing by Edwina Gibbs)