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Japan's Nikkei steady after long decline; Renesas tumbles
2012年5月28日 / 凌晨3点23分 / 5 年前

Japan's Nikkei steady after long decline; Renesas tumbles

* Renesas sags on capital-raising plan
    * Fanuc up on upbeat Morgan Stanley MUFG note
    * Nomura falls; sources say linked to 2nd insider case

    By Dominic Lau	
    TOKYO, May 28 (Reuters) - Japan's Nikkei average steadied on
Monday after marking eight straight weeks of declines last week,
although chipmaker Renesas Electronics Corp plunged
after sources said it was planning to raise $1.3 billion to fund
    Renesas sank more than 11 percent to a record low on the
news, which also sent NEC Corp, one of its parent
companies, tumbling.	
    But gains for index heavyweight Fanuc Corp helped
offset those falls, after Morgan Stanley MUFG raised its price
target on the industrial robot maker, saying a recent correction
in the stock was overdone.	
    By the midday break, the Nikkei was flat at
8,579.03, holding below its five-day moving average near 8,601, 
an d still in "oversold" territory, wi th its 14-day relative
strength index at 28.4.	
    Last week, the benchmark logged its worst weekly losing
streak in 20 years, and is down 16.3 percent since hitting a
one-year high on March 27 as concerns about the impact of a
possible Greek exit from the euro zone and worries over slowing
global growth intensified.	
    "The market has been panicking for eight weeks. It's
probably not sensible to forecast exactly when it will cease
panicking. It's important to consider what it focuses on when it
ceases panicking, which is probably the extreme valuations,"
said Nicholas Smith, Japan strategist at CLSA.	
    "The further it falls, the more it should rebound when the
market comes to its senses," he said, pointing to real estate
companies and Sumitomo Mitsui Financial Group as among
stocks on which to focus.	
   Gains in Canon Inc and Sharp Corp after a
recent battering also supported the market. They climbed 0.9 and
2.1 percent respectively.	
    Renesas Electronics ended the morning session down
10 percent after earlier falling to a record low on news it will
sell loss-making operations and cut at least 12,000 jobs as
Japan's chip sector grapples with its biggest shake-out in a
decade. NEC, the most heavily traded stock by volume, also fell
10 percent. 	
    A trader at a foreign bank said Renesas was impossible to
    According to research firm Data Explorers, 89.09 percent of
Renesas stock that is available to be borrowed was already out
on loan as of May 24.	
    The broader Topix slipped 0.3 percent to 719.67.	
    Trading volume on the main board after the midway point was
light, at 33 percent of its full daily average for the past 90
    Underlining the gloomy outlook, the Topix's one-month
earnings momentum - analysts' earnings upgrades minus downgrades
as a total of estimates - slowed to 0.1 percent from 5.4 percent
last month after rebounding in recent months, Thomson Reuters
Datastream data showed.	
    However, Deutsche Bank said in a note that domestic
investors were net sellers of Nikkei futures contracts by 8.1
billion yen last week and historically, when they are net
sellers it tends to be positive for the stock index over the
subsequent two weeks.	
    Also weighing on the market, Nomura Holdings dropped 1.2
percent after Japan's largest broker was linked to a second
insider trading case involving a fund management arm of Sumitomo
Mitsui Trust Holdings Inc. 	
    Sumitomo Heavy Industries Ltd sagged 6.4 percent
after the company said on Friday that its contract with the
Ministry of Defense had been suspended due to over-reporting of

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