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Nikkei turns up as investors buy large cap stocks, focus on earnings
2013年7月23日 / 凌晨3点03分 / 4 年前

Nikkei turns up as investors buy large cap stocks, focus on earnings

* Nikkei rises 0.8 pct, Topix up 0.4 pct
    * Nippon Steel jumps on price hike report
    * Investors focus shifts to corporate earnings

    By Dominic Lau and Tomo Uetake
    TOKYO, July 23 (Reuters) - Japan's Nikkei average advanced
on Tuesday morning, reversing early losses, with traders citing
opportunistic buying by investors in large cap names as
attention shifts to the earnings season.     
    By the midday break, the benchmark Nikkei gained 0.8
percent to 14,770.27 after falling as low as 14,549.06 in early
    "People, especially long-onlys, are not overweight in Japan.
As long as the markets are stable - the U.S. market is looking
good, China is not falling off the cliff, there will be
opportunistic buying here and there," a senior dealer at a
foreign brokerage in Tokyo said.
    Nippon Steel & Sumitomo Metal Corp climbed 3
percent after the Nikkei newspaper said the steel company and
Toyota Motor Corp have agreed to raise the price of
steel sheet for April-September by some 10 percent from the
previous six-month span on a weaker yen.
    The report lifted other steel makers, with JFE Holdings Inc
 advancing 3.3 percent and the steelmaker sector
 adding 2.6 percent to become the best sectoral
    Index heavyweight SoftBank Corp jumped as much as
2.6 percent in the morning ahead of its President Masayoshi
Son's speech at a seminar in Tokyo. The stock was up 0.8 percent
after the morning session. 
    The broader Topix index gained 0.4 percent to
1,221.40 in light trade, with 33 percent of its full daily
average for the past 90 trading days.
    "What's happening in the market is that it's just sort of
rebounding from yesterday's unexpected weakness following the
election. We are kind of back to pre-Friday levels," another
senior trader said, adding that his brokerage had more sell
orders than buy.
    Prime Minister Shinzo Abe's ruling Liberal Democratic Party
and its coalition partner won decisively in the upper house
election held on Sunday, opening the door for him to pursue
tough reforms required for a sustained economic recovery.
    The government's fiscal expansionary policy, coupled with
the BOJ's aggressive monetary stimulus, have helped push the
benchmark Nikkei up 42 percent this year.
    The benchmark was holding above 14,596, the 61.8 percent
retracement of its slide from May 23 to June 13.
    In terms of valuations, Japanese equities carried a 12-month
forward price-to-earnings ratio of 14.7, rebounding from a near
six-month low of 13.2 touched in late June though still below a
three-year high of 16.3 hit after the index reached a 5-1/2 peak
on May 23.
    Analysts said the prospect of the Nikkei building on its
gains after the election will depend on whether Abe can
implement drastic structural reform, while the latest corporate
earnings results would also provide further evidence of the
prime minister's push to revive growth.
    According to data provider Markit, publisher Kadokawa Group
,  precision motor maker Nidec Corp and
measuring instruments maker Advantest Corp were among
the most shorted stocks in Japan, ahead of their quarterly

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