RTRS: Nikkei touches five-week high as bank shares gain
TOKYO (Reuters) - Japan's Nikkei average touched a five-week high above 8,000 on Wednesday as Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) and other banks gained on moves by the Bank of Japan to bolster banks' capital.
But the benchmark average was flat by midday as investors took the rise to 8,000 as a chance to lock in their profits on recent gainers such as Fast Retailing Co (9983.T: Quote, Profile, Research, Stock Buzz), operator of the Uniqlo casual clothing chain.
Sharp Corp (6753.T: Quote, Profile, Research, Stock Buzz) and other solar cell makers rallied after the government said it aimed to lift the country's global share in solar cell production to over one-third from the current 25 percent by 2020.
"There have been signs of the market overheating after the Nikkei rose quite a bit," said Hajime Nakajima, deputy general manager of the sales trading department at Cosmo Securities.
After rising above 8,000 for the first time since February 10, the Nikkei .N225 drifted back down. At the midday break it was up just 1.41 points at 7,950.54.
The average has climbed more than 750 points, or over 10 percent, in the last four days.
The broader Topix .TOPX climbed 0.5 percent to 764.46.
Tokyo stocks gained right from the open after U.S. stocks surged following an unexpected leap in U.S. housing starts figures. .N
BANKS UNDERPIN MARKET
The BOJ said on Tuesday it would offer up to $10.2 billion in subordinated loans to Japanese banks, in the latest move to prevent lending to companies from drying up.
"The BOJ's plan to support banks is helping bank shares to extend their recent rally," said Shinji Igarashi, equity manager in the sales department at Chuo Securities. "Investors are also chasing banks as they think the central bank might soon decide on more measures to help the financial sector."
The BOJ on Wednesday ends a two-day policy meeting at which it is expected to discuss whether to buy more government debt to tackle credit tightness. But some market participants are unsure if the central bank will take such a step this week.
Japan's top lender Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) rose 1.3 percent to 483 yen and Mizuho Financial Group gained 3.5 percent to 207 yen. Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) rose 3.1 percent to 3,350 yen.
Sharp, the world's No.2 maker of solar cells, gained 3.2 percent to 800 yen, while Sanyo Electric Co Ltd (6764.T: Quote, Profile, Research, Stock Buzz) added 0.7 percent to 141 yen and Tokyo Electric Power Co Inc (9501.T: Quote, Profile, Research, Stock Buzz) rose 1.4 percent to 2,460 yen.
Fast Retailing fell 2.3 percent to 10,770 yen, hit by profit-taking after it touched a one-month high of 11,400 yen.
Trade was active on the Tokyo exchange's first section, with 1.25 billion shares changing hands, compared with last week's morning average of 1.02 billion.
Advancing stocks outnumbered declining ones by 854 to 705.
