|
 By the midday break, the benchmark Nikkei was up 0.5 percent at
15,530.29, its highest level since Jan. 23, reversing early losses
that followed Friday's weakness on Wall Street.
Still, the index is down 4.7 percent since the start of this year
following a record-breaking 57 percent rally in 2013, buoyed by
Tokyo's aggressive stimulus policies.
This week will mark the first peak week of the April-June quarter
earnings season. Nissan Motor Co Ltd will be the highlight when it
reports its results later in the day.
Nissan rose 0.2 percent, Toyota Motor Corp added 0.7 percent, and
Fuji Heavy Industries Ltd - which makes Subaru cars - climbed 0.7
percent.
"Strong results from automakers could help the Nikkei rise above
resistance of around 15,500, and quickly push toward 16,000,
possibly by the end of August," said Ryota Sakagami, chief equity
strategist at SMBC Nikko Securities.
Since mid-June, the Nikkei has had a few unsuccessful attempts to
rise above the 15,500 level.
Traders say a cluster of barrier options, which are related to
equity-linked bonds, are one of the reasons why the benchmark has
not been able to rise above that level.
"There are some potential signs of encouragement for the rally to
resume once we get through the uncertainties of first quarter
earnings," said Stefan Worrall, director of equity cash sales at
Credit Suisse in Tokyo.
Casino-related stocks, such as Konami Corp and Fuji Media Holdings
Inc, benefited from a report by the Nikkei paper that casino
openings in Japan could come before the 2020 Summer Olympics.
[to top of second column] |
Konami, which has expressed interest in operating casinos in Japan,
added 1.9 percent, while Japan Cash Machine Co Ltd, a maker of
coin-counting terminals used in casinos, jumped 5.3 percent.
Pachinko machine maker Universal Entertainment Corp gained 2.5
percent and Fuji Media, a broadcaster headquartered in a section of
Tokyo considered prime location for casino development, climbed 3.1
percent.
Among big market caps, NTT DoCoMo gained 2.2 percent to a 6-1/2-year
high after it reported a fall in contract cancellation in the three
months to June.
The broader Topix advanced 0.4 percent to 1,286.74, while the JPX-Nikkei
Index 400 also rose 0.4 percent to 11,717.03.
(Editing by Shri Navaratnam)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright
2014 Reuters. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.
 |
