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Nikkei hits three-week high on China GDP, softer yen
2012年10月18日 / 凌晨1点27分 / 5 年前

Nikkei hits three-week high on China GDP, softer yen

* Softer yen continues to spur gains for exporters
    * China GDP matches consensus; on track for year target
    * Real estate stocks benefits from easing hopes

    By Sophie Knight
    TOKYO, Oct 18 (Reuters) - Japan's Nikkei share average
jumped to a three-week high after China GDP figures reassured
with no nasty surprises, prompting investors, heartened by
recent weakness in the yen, to buy back heavily battered shares.
    The benchmark rose 1.7 percent to 8,952.68, sailing above
its 25-day moving average as the yen softened to 79 versus the
dollar, a fillip for exporters whose overseas earnings have been
crimped by the strength of the Japanese currency.
    "The whole index is being driven up, without too much focus
on individual stocks, on short-covering due to the favourable
exchange rate," said Yutaka Miura, senior technical analyst at
Mizuho Securities. 
    China's economy slowed for a seventh straight quarter in
July-September, missing the government's target for the first
time since the depths of the global financial crisis, but other
data released on Thursday pointed to a year-end rebound.
    Komatsu Ltd, a construction machinery maker often
seen as a gauge of sentiment on China due to its large exposure
to the country, jumped 3.9 percent.
    "There is still extremely negative sentiment around the
global slowdown, particularly around China... but I think that
pessimism has been largely priced in, making Japanese stocks
cheap," said Tetsuro Ii, CEO of Commons Assets Management.
    "I think its a good idea to buy over the next month or so
while things are still cheap, and before we have to contend with
the U.S. fiscal cliff and other obstacles," Ii said.  
     The Nikkei has been hit in recent weeks as investors fret
over profit warnings and likely lacklustre earnings to come, and
the index lost 3.7 percent last week, its biggest weekly drop
since May.
    But earnings in the U.S. this week have not been as bad as
expected, boosting sentiment. Of the 14 percent of S&P 500
companies that have already reported profits, 65 percent have
beaten analysts' expectations, above the long-term average of 62
    Upbeat U.S. housing and other economic data has also
improved sentiment for risk assets, weighing on the Japanese
currency, which is holding a whisker above a five-month low
against the euro and a tad higher than a two-month trough versus
the dollar.
    Toyota Motor Co added 2.5 percent to a three-week
high, in spite of a report that it is looking to cut production
by 200,000 cars this year due to lower demand in China on
anti-Japanese sentiment in the wake of a territorial spat.
    The real estate sector gained 2.2 percent and was
among the strongest sub-indexes on expectations that the Bank of
Japan will ease monetary policy further at its meeting on Oct.
30, possibly by bumping up its budget for real-estate investment
    Mitsui Fudosan Co Ltd and Mitsubishi Estate Co Ltd
 gained 2.2 and 2.1 percent, respectively. 
    Nissin Electric Co Ltd rose 4.4 percent after
JPMorgan upgraded the LCD screen maker to "overweight" from
"neutral", saying it was likely to score record high earnings in
2013 and that the share price's fall of 19 percent over the last
three months was overdone.

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