Nikkei bounces as yen rally pauses, Idemitsu Kosan tumbles

martes 28 de junio de 2016 22:43 GYT

* Heavily battered exporters, financials rebound

* Volatility ease, volatility index falling for 3rd day

* It's a technical rebound - trader

By Ayai Tomisawa

TOKYO, June 29 (Reuters) - Japanese stocks rose on Wednesday morning thanks to a modest recovery in global equities following the Brexit rout, while a pause in yen buying also soothed market sentiment.

By mid morning, the benchmark Nikkei share average had climbed 1.4 percent to 15,539.82.

The early spotlight fell on Idemitsu Kosan Co on news that its founding family is opposed to the refiner's planned takeover of smaller rival Showa Shell Sekiyu. Its shares tumbled more than 9 percent after Kyodo reported on Wednesday that Idemitsu is considering issuing new shares to counter the founding family's opposition.

The overall mood in the market was much calmer as the pound hovered above their post-Brexit lows, while the dollar also firmed to 102.63 yen, moving further away from its 2-1/2-year low of 99.00 touched on Friday after the outcome of the UK referendum.

Volatility eased as well, with the Nikkei Volatility Index dropping 9.4 percent on the day, falling for a third day after spiking to more than a four-month high on Friday.   Continuación...