Nikkei bounces as China cbank comments allay credit crunch fears
* Nikkei rises 1.1 pct, Topix up 0.8 pct * PBOC comments and improving U.S. data ease market fears * Investors pick up battered China-related shares * SoftBank gains, Sprint shareholders approve takeover deal By Tomo Uetake TOKYO, April 26 (Reuters) - Japan's Nikkei share average rebounded on Wednesday after China's central bank sought to allay fears of a credit crunch, and as robust U.S. data fueled gains on Wall Street overnight. The benchmark Nikkei was up 1.1 percent at 13,111.24, while the broader Topix gained 0.8 percent to 1,086.89. "Although no one is sure whether the crisis is manageable by the Chinese authorities, the PBOC's (People's Bank of China) announcement is seen soothing the markets, at least for now," said Masayuki Doshida, senior market analyst at Rakuten Securities. "Investors' risk-averse stance will be eased as long as the Chinese market stabilises." China's central bank said on Tuesday that it had given cash to some institutions facing temporary shortages and would continue to do so if needed, in a bid to further assure markets. Fears that the world's second largest economy was sliding towards a liquidity crisis sent Asian markets down on Monday and Tuesday. U.S. stocks rose by the most in nearly two weeks on Tuesday after data showed business investment and the housing recovery continued apace, reassuring investors worried about the Federal Reserve's plans to reduce its massive monetary stimulus. Investors in Tokyo picked up recently-battered China-related shares. Construction machinery maker Komatsu Ltd and air-conditioner maker Daikin Industries Ltd rose 3.4 percent and 2.5 percent, respectively. SoftBank Corp, which was the most traded stock on the main board by turnover, gained 2.2 percent. After Sprint Nextel Corp's shareholders voted on Tuesday in favour of a sweetened takeover offer by SoftBank, the Japanese mobile operator just needs approval from the U.S. telecommunications regulator to close the deal. The benchmark Nikkei has dropped 18 percent since reaching a 5-1/2-year high on May 23, hurt by slowing growth in China, fears of a pullback in the U.S. Federal Reserve's stimulus and disappointment over the Japanese government's recently unveiled growth strategy. The index is still up 26 percent this year, helped by Prime Minister Shinzo Abe's sweeping fiscal and monetary expansionary policies aimed at pulling the world's third-biggest economy out of a two-decade long slump.
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