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Nikkei rises, on track for longest winning run since May 23 selloff
June 18, 2013 / 1:17 AM / in 4 years

Nikkei rises, on track for longest winning run since May 23 selloff

* Nikkei and Topix both up 0.6 pct
    * Sony rises after hedge fund ups stake, presses spin-off

    By Dominic Lau
    TOKYO, June 18 (Reuters) - Japan's Nikkei rose on Tuesday,
heading for a third straight day of gains, which will mark its
longest winning run since a sharp selloff on May 23, underpinned
by hopes the Federal Reserve will reinforce its commitment to
support the U.S. economy.
    Sony Corp climbed 3.6 percent after New York-based
hedge fund company Third Point said it had raised its stake in
the Japanese firm and asked for an opportunity to present its
proposal for a partial spin-off of Sony's entertainment unit to
the board. 
    It was the most traded stock on the main board by turnover.
    The Nikkei advanced 0.6 percent to 13,107.03,
breaking above the bottom of the Ichimoku cloud in a bullish
sign. It climbed 2.7 percent on Monday, lifting the index out of
bear market territory.
    "The yen move is obviously driving the yen-sensitives higher
from their low positions ... It's a nice pick-up in volume
versus yesterday but nothing really fundamental," a senior
trader at a foreign brokerage said.
    The yen was last traded at 94.79 yen to the dollar on
Tuesday, down from the previous session's high of 94.08, giving
exporters some support.
    Toyota Motor Corp put on 1.6 percent and was the
second-most traded, while Subaru maker Fuji Heavy Industries
 added 1.9 percent and Mazda Motor gained 1.4
    The broader Topix index gained 0.6 percent to
1,091.18, ahead of a two-day Fed meeting that will begin on
    Many investors have been cutting their long Japanese
equities and short yen positions on concerns that the Fed will
scale back its stimulus and after the Nikkei had rallied more
than 80 percent from mid-November to its 5-1/2 year peak hit on
May 23. Since then, trading in Japanese equities has been
extremely volatile.
    Disappointment over a growth strategy unveiled by the
Japanese government recently and worries over slowing growth in
China have also contributed to the market tumult.
    Underscoring the volatility, since May 23 the Nikkei has had
15 sessions where intraday swings exceeded 2.5 percent, compared
with 16 such trading days for the year up to May 22 and four
such days in the whole of 2012. The U.S. S&P 500 only has
had one such trading day in 2013, and the Euro STOXX 50
 index has 11.
    The benchmark Nikkei has fallen 17.6 percent since that
mulityear high on May 23, but is still up 6 percent since April
4, when the Bank of Japan unveiled sweeping stimulus measures
and has risen 26 percent this year.

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