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Japanese stocks jump on bargain hunting in banks, real estate

Japanese stocks jump on bargain hunting in banks, real estate

Japanese stocks jumped Tuesday in thin post-holiday trade on bargain hunting in stocks seen as sensitive to domestic demand such as banks and real estate.
The benchmark Nikkei 225 stock index rose 295.59 points, or 1.94 percent, to close at 15,552.59 points on the Tokyo Stock Exchange Tuesday. The index added 1.5 percent, to close at 15,257.00 points Friday.
Trading was light, with overseas investors sidelined for the Christmas holiday. Japanese markets were closed Monday for a national holiday.
Players expect flows to be thin in the run-up to the New Year holidays, with the Nikkei likely to remain around 15,500 for the rest of the week.
"We saw an early morning boost from foreign orders before people went on holiday but otherwise it is quiet," said Trevor Hill, head of client trading at UBS.
Domestic-demand oriented stocks led the gains. Mitsubishi UFJ Financial Group rose 3.74 percent to 1,080 yen (US$9.47; euro6.58), Sumitomo Mitsui Financial Group added 3.57 percent to 869,000 (US$7,619; euro5,292), while Daiwa House Industry Co. climbed 3.51 to 1,502 yen (US$13.17; euro9.15).
Electronics giant Hitachi added 3.85 percent to 836 yen (US$7.33; euro5.09) after the company announced plans to sell down its stake in its loss-making liquid crystal display unit, raising hopes it will embark on a business restructuring that could boost profit margins.
Matsushita Electric Industrial Co., which is purchasing part of Hitachi's stake, rose 1.08 percent to 2,325 yen (US$20.38; euro14.15), while Canon, which is also in on the deal, finished unchanged at 5,240 yen (US$45.94; euro31.91).
Japan's top mobile phone carrier NTT DoCoMo rose 1.63 percent to 187,000 yen (US$1,639; euro1,138), following reports the company plans to tie-up with Internet search giant Google to provide search and e-mail services on its handsets.
The broader Topix index, which includes all shares on the exchange's first section, added 26.83 points, or 0.18 percent, to 1496.03. Volume was light at 1.418 billion shares.
The dollar was trading at 114.06 yen at 2:50 p.m. (0550 GMT) Tuesday, down from 114.32 yen late Monday in New York. The euro fell to US$1.4394 from $1.4405.


Updated : 2020-12-05 13:58 GMT+08:00