Nikkei advances further on BOJ stimulus; financials lead gains

Tue Apr 9, 2013 11:21pm EDT

* Market bask in afterglow of BOJ bazooka - strategist
    * FamilyMart tumbles on poor forecast

    By Tomo Uetake
    TOKYO, April 10 (Reuters) - Japan's Nikkei average rose on
Wednesday morning, moving closer to a near five-year high,
helped by optimism in the economic outlook since the Bank of
Japan started its sweeping monetary expansion campaign.
    Shares of banks and real estate firms led the gains on
expectations that the reflationary policy will benefit them the
most. 
    "The market is still basking in the afterglow of the BOJ
bazooka," said Yuya Tsuchida, a strategist of Toyo Securities,
referring to the BOJ's bold monetary easing steps announced last
Thursday.
    The Nikkei gained 0.7 percent to 13,289.30 by the
midday break, moving closer to an intraday high of 13,331.39 
touched the previous day, its highest level since August 2008.
    Overnight gains on Wall Street also underpinned Japanese
equities, though gains may be capped in late trade with 
investors cautious of signs the market is overbought after the
Nikkei's sharp rise in the past week.
    The benchmark currently trades 6.6 percent above its 25-day
moving average of 12,463.26. A level above 5 percent is
considered overbought.
    "The market has been gaining sharply, especially
reflationary stocks. The rises have been very, very steep," said
Yasuo Sakuma, portfolio manager of Bayview Asset Management,
adding he would not be surprised if investors wanted to lock in
some of their gains.
    Analysts said that although the mood remains positive, the 
rate at which the index climbs tends to slow when it trades
above 13,200.
    Financials led the gains, with Mitsubishi UFJ Financial
Group soaring 4.2 percent, Sumitomo Mitsui Financial
Group jumping 6 percent and Mizuho Financial Group
 gaining 2.4 percent. They were the three most-traded
stocks on the main board by turnover.
    Nomura Holdings Inc surged 5.3 percent and was the
fifth most-traded stock.
    Asset-related stocks and exporters also attracted buying.
Mitsubishi Estate Co advanced 2.6 percent, while Sharp
Corp rose 3.2 percent.
    However, FamilyMart Co bucked the overall market
and fell 5.7 percent after the convenience store operator's
weaker-than-expected earnings forecast for the year through
February 2014 disappointed investors.
    The broader Topix rose 1.5 percent to 1,118.01.
    The Nikkei has gained more than 5 percent since Thursday's
BOJ announcement of massive monetary stimulus. The central bank
plans to inject about $1.4 trillion into the economy in less
than two years by buying government bonds across the yield curve
as well as riskier exchange-traded funds (ETFs).
    The benchmark has surged more than 50 percent since
mid-November, when Shinzo Abe promised expansionist fiscal and
monetary policies, dubbed "Abenomics", to revive Japan's economy
during his election campaign. He was elected prime minister the
following month.
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