RTRS: Nikkei up 1 percent amid U.S. hopes, Nomura tumbles
The Nikkei share average rose 1 percent on Monday, after earlier hitting its highest point in over a week, buoyed by exporters on a weaker yen and hopes for economic stimulus measures by the U.S. government.
Komatsu Ltd and other machinery stocks gained after data showing Japan's core machinery orders fell 1.7 percent in December from the previous month, much less than expected.
But Nomura Holdings Inc tumbled more than 10 percent after the brokerage, Japan's biggest, said it would raise up to $3.3 billion in its first issue of common shares in 20 years to replenish its capital base.
Market players said hopes for the U.S. economic steps helped push up the market, but uncertainty over the plan's development capped further gains.
"Investors are picking up exporters for now on short-covering, but it's doubtful if the market will continue to gain," said Takahiko Murai, general manager of equities at Nozomi Securities.
"The market's focus could shift back to the deteriorating state of the economy once it sees the U.S. stimulus plan, which now appears that it might be smaller than expected, and due to uncertainty over the establishment of a 'bad bank' scheme."
The benchmark Nikkei added 82.78 points to 8,159.40 by the midday break, after briefly hitting its highest point since January 29.
The broader Topix rose 0.2 percent to 792.45.
U.S. Treasury Secretary Timothy Geithner will outline the Obama administration's financial stability plan in speech at 11 a.m. EST (1600 GMT) on Tuesday, the Treasury Department said.
The keenly awaited bank rescue plan and economic stimulus package are key parts of President Barack Obama's strategy for tackling the country's deepest financial crisis since the Great Depression.
"With aggressive stimulus steps and monetary easing in the U.S., its economy will likely hit bottom later this year, but strong economic growth is unlikely," said Yoshiki Shinke, senior economist at Dai-ichi Life Research Institute.
"So Japan's exports will likely stay weak for a while."
EXPORTERS GAIN, NOMURA TUMBLES
The dollar was trading around 91.77 yen, after climbing to 92.42 yen earlier on trading platform EBS, its highest since early January. Investors welcome a softer yen as it boost exporters' overseas profits when repatriated.
Exporters gained, with Canon Inc rising 3.3 percent to 2,645 yen. Toyota Motor Corp climbed 3.9 percent to 3,210 yen despite forecasting a far bigger full-year loss than it flagged several weeks ago.
