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RPT--Nikkei on track for biggest daily gain since June 2013 on upbeat U.S. data
October 20, 2014 / 2:06 AM / 3 years ago

RPT--Nikkei on track for biggest daily gain since June 2013 on upbeat U.S. data

(Repeats to more subscribers)
    * Nikkei on track for biggest daily gain since June 2013
    * Investors scoop up battered exporters as yen weakens
    * Gains may be short-lived as market still spooked-analyst

    By Ayai Tomisawa
    TOKYO, Oct 20 (Reuters) - Japan's Nikkei share average
soared 3.3 percent on Monday morning and is on track to post the
biggest daily rise in more than a year after Wall Street took
heart on Friday from upbeat U.S. data, while the weaker yen
lifted exporters such as Toyota Motor Corp and Honda
Motor Co.
    The Nikkei share average rose 482.98 points to
15,015.49 in mid-morning trade to recover most of the losses
posted last week. 
    Upbeat U.S. consumer sentiment gave relief to investor
sentiment and lifted risk appetite. The Thomson
Reuters/University of Michigan index of consumer sentiment
unexpectedly rose in early October to its highest level since
July 2007. Separate data showed groundbreaking for new homes
rose more than expected last month. 
    Traders said investors are scooping up recently battered
stocks after the Nikkei tumbled 5 percent last week hit by
concerns about global growth and the stronger yen.
    "Selling in some of the stocks was overdone. Investors are
buying them on the dips," a trader at a Japanese brokerage said.
    But some analysts still stay cautious against negative
catalysts which battered the market earlier this month.
    "With Halloween just around the corner, the market was
spooked by 'ghosts' and these ghosts will probably stick around
longer," said Hiroyuki Nakai, chief strategist at Tokai Tokyo
Research Center. "The ghosts are European economic concerns,
worries on what could happen after the Fed ends tapering, and
fears about Ebola."
    Nakai said that these fears still linger in the market, and
the rebound may be short-lived.
    Toyota jumped 5.2 percent, Honda soared 3.2 percent and
Panasonic Corp surged 5.0 percent after the dollar rose
0.2 percent at 107.18 yen, putting further distance
between a five-week low of 105.90 hit the previous week.
    NEC Corp rose 5.3 percent after the Nikkei business
daily reported that its operating profit for the April-September
period was likely to be about 20 billion yen, compared to just
shy of 400 million yen in the previous year.
    The broader Topix jumped 3.6 percent to 1,219.12,
and the new JPX-Nikkei Index 400 gained 3.6 percent
to 11,095.52.

 (Editing by Eric Meijer)

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