Nikkei rises above 13,500, investors wary of going short

Thu Apr 11, 2013 3:21am EDT

* Nikkei breaks 13,500
    * Index seen climbing to 14,500 by end of year -poll
    * Developers, financials, insurers outperform

    By Ayai Tomisawa
    TOKYO, April 11 (Reuters) - Japan's Nikkei share average
jumped to end above 13,500 on Thursday, the first time it has
done so in almost five years, with the bullish mood in place
since the central bank announced unprecedented stimulus measures
showing few signs of abating.
    The benchmark index has climbed 9.6 percent since the Bank
of Japan surprised markets a week ago with a plan to inject $1.4
trillion into the world's third-largest economy to beat
deflation. The BOJ meets again on April 26.
    "Until then, investors don't want to short... They aren't
expecting the central bank to announce anything drastic at the
meeting, but there is a risk of losing out if it does," said
Hiroyuki Fukunaga, the chief executive of Investrust.
    The Nikkei rose 2 percent to end at 13,549.16, with
analysts noting that further weakness in the yen and record
highs on Wall Street were also serving as tailwinds for the
market.
    The index currently trades 7.5 percent above its 25-day
moving average of 12,527.89. It has surged over 50 percent since
mid-November, when Japan's current prime minister began calling
for bold BOJ action as part of his election campaign.
    "The current market is overbought. But investors tend to
shrug off technical signs showing that the market is overheated
as excitement over monetary easing outweighs," said Kenichi
Hirano, a strategist at Tachibana Securities.
    A Reuters poll showed analysts now expect the Nikkei, up
nearly 30 percent so far this year, to rise 40 percent in 2013
to 14,500, the highest since June 2008, while the yen will
likely slide 18 percent against the dollar to close the year
around 102 to the dollar.
   
    The Topix advanced 2.3 percent to 1,147.29 in heavy
trade, with 5.15 billion shares changing hands. That compares
with last month's average trading volume of 3.24 billion shares.
    Developers, brokers and insurers were among the biggest
gainers.
    Nomura Holdings, Japan's largest securities firm,
jumped 8.3 percent, Mitsubishi UFJ Financial Group 
gained 2.6 percent and Dai-ichi Life Insurance Co 
soared 5.4 percent.
    Mitsui Fudosan Co advanced 3.4 percent and
Mitsubishi Estate Co gained 3.1 percent.
    Among exporters, Toyota Motor Corp rose 5.8
percent, and Honda Motor Co gained 3.1 percent.
    Shares of Sharp Corp surged 8 percent after a
newspaper reported that the TV maker is likely beat its own
profit estimate in the October-March period, helped by
restructuring steps and increased sales of LCD panels to Samsung
Electronics Co Ltd. 
    The yen last traded at 99.73 yen to the dollar. On
Wednesday, the dollar hit a four-year high of 99.88 yen
.