June 5, 2012 / 1:36 AM / 6 years ago

Nikkei rises ahead of G7 emergency talks, Canon gains

 * 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 on report of capital raising via share
 TOKYO, June 5 (Reuters) - Japan's Nikkei share average on
Tuesday edged away from the previous session's hefty losses,
with investors trimming bearish bets ahead of emergency talks by
the Group of Seven leading industrialized powers on the euro
zone crisis.	
 The Nikkei added 0.6 percent to 8,343.49, helped as
Canon Inc rose 3.6 percent after it said it 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.	
 But Fast Retailing Co Ltd lost 5.5 percent after
reporting May same-store sales at its Uniqlo shops had dropped
by around 10 percent. 	
 The broader Topix index gained 1 percent to 702.66,
regaining the 700-mark after hitting its lowest in more than 28
years on Monday.	
 Naomi Fink, Jefferies' Japan equity strategist, said she
remained long volatility and short securities and
 "There are still quite a lot of event risks, so I am not
getting out of that vol position anytime soon ... Today there is
a short-covering rally going on," Fink said.	
 "Factory orders were not as good as expected from the U.S.
People are wondering whether policies in China are going to be
conducive for revitalisation. I don't see that optimism coming
out just yet." 	
 The emergency talks by the G7 finance chiefs on Tuesday come
as alarm is intensifying over strains in the 17-nation European
currency area. 	
 Sony Corp advanced 1.7 percent to above 1,000 yen,
after falling below that level to its lowest close in 32 years
on Monday.	
 Scandal-hit Olympus Corp climbed 3.8 percent after
the Sankei newspaper reported that it is considering raising
about 50 billion yen ($640 million) through a third-party share
 The benchmark Nikkei has shed 18.6 percent since hitting a
one-year peak on March 27 on concerns over the deepening euro
zone debt crisis and slowing growth in the United States and
 Despite Tuesday's gains, the Nikkei was still deep in
"oversold" territory, with its 14-day relative strength index at
26.9. Thirty or below is deemed oversold. 
($1 = 78.2800 Japanese yen)	
 (Reporting by Dominic Lau; Editing by Joseph Radford)	
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