June 5, 2012 / 6:52 AM / 5 years ago

Nikkei snaps 4-day losing streak on hopes for G7 talks

 * Topix rebounds after hitting 28-yr low on Monday
 * Canon rises on share buyback plan; Sony regains 1,000 mark
 * Fast Retailing sinks after weak Uniqlo same-store sales
 * Olympus up, report of capital raising via share placement
 By Sophie Knight	
 TOKYO, June 5 (Reuters) - Japan's Nikkei average sprang back
on Tuesday from four straight sessions of losses as investors
snapped up big name bargains ahead of emergency talks between
the G7 industrialised nations to tackle a deepening euro zone
crisis. 	
 The Nikkei advanced 1 percent to 8,382.00, boosted
by Canon Inc 's gain of 3.4 percent on plans to buy back
up to $640 million worth of its own shares. The camera and
printer maker was the top-weighted gainer and the most heavily
traded stock on the main board by turnover.	
 "The market has calmed down from yesterday, but the
atmosphere is still very much one of 'wait and see'," said
Yasutaka Kuga, a partner at Senrigan Capital. "No one really
wants to play their hands."   	
 Leaders of the G7 industrialised nations were due to hold an
emergency telephone conference later on Tuesday to discuss a
deepening euro zone crisis as Spanish banks show increasing
signs of strain and a June 17 Greek election poses the risk that
the country may leave the euro zone.  	
 "If nothing concrete comes out of the meeting then people
will be disappointed," said Masayuki Otani, chief market analyst
at Securities Japan. "But if they give a direction for how
they're going to tackle the problems then the market might calm
down."	
 Olympus Corp, which is struggling to recover from
an accounting scandal, climbed 4 percent after the Sankei
newspaper reported that it was considering raising about 50
billion yen ($640 million) through a third-party share
allotment.	
 Although unease about the euro zone's fate remained,
investors took the opportunity to pick up cheap stocks that were
heavily knocked down on Monday on concern about a slowing U.S.
economic recovery following a slew of soft economic data over
the weekend and a sturdier yen.	
 Sony Corp climbed 3.3 percent to break back above
1,000 yen, glancing off a 32-year low, while Mazda Motor Corp
 bounced back 5.6 percent after tumbling 7.3 percent in
the previous session. 	
 Weighing on the Nikkei index was widely owned Fast Retailing
Co Ltd, which lost 8.8 percent after reporting May
same-store sales at its Uniqlo shops had dropped by about 10
percent.	
 The broader Topix index recovered on Tuesday to
close up 1.8 percent at 708.24, gaining a foothold above 700
after breaching that level to hit a 28-year low on Monday. 	
 "Today there is a short-covering rally going on," said Naomi
Fink, equity strategist at Jefferies' Japan, who said that she
remained long on volatility and short on securities 
and banks.	
 "There are still quite a lot of event risks, so I am not
getting out of that vol (volatility) position anytime soon ...
Factory orders were not as good as expected from the U.S ... I
don't see that optimism coming out just yet," Fink said. 	
 A report showing falling U.S. factory goods for the third
time in four months added to a slew of soft U.S. data released
since Friday that has renewed pessimism about a stuttering
recovery in the world's largest economy.   	
 Fears of a euro zone collapse and concerns about slowing
growth in the United States and China have helped to push the
benchmark Nikkei down 18.2 percent from its one-year peak on
March 27.	
 Despite Tuesday's gains, the Nikkei was still in "oversold"
territory, with its 14-day relative strength index at 29.3.
Thirty or below is deemed oversold.	
 	
 	
 
($1 = 78.4200 Japanese yen)	
	
 (Additional reporting by Dominic Lau)	
 

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