Nikkei rises on US data; Mitsui Fudosan dives on share issue plan

Tue May 27, 2014 9:43pm EDT

* Mitsui Fudosan dives on share issuance news
    * More catalysts needed once Nikkei is above 14,500-analyst

    By Ayai Tomisawa
    TOKYO, May 28 (Reuters) - Japanese stocks edged up on
Wednesday morning as strong U.S. data buoyed market sentiment,
but further gains were expected to be limited due to a lack of
fresh catalysts.
    Real estate developer Mitsui Fudosan Co dived 7
percent and was the most traded stock by turnover on news it
would raise as much as $3.6 billion by issuing new shares.
 
    The benchmark Nikkei average was up 0.3 percent at
14,655.72 in midmorning trade, after dipping into negative
territory earlier.
    Analysts said the upside may be limited on Wednesday after
the Nikkei rose over the past four days helped by strong
economic data from China and the United States.
    "Risk appetite is strong on bright global economic figures,
but we don't have enough catalysts to chase the market higher
once the index is above 14,500," said Hikaru Sato, a senior
technical analyst at Daiwa Securities.
    He said the market is waiting for Prime Minister Shinzo Abe
to flesh out the details of his growth strategy in June, the
third arrow of "Abenomics" which is expected to include plans to
cut corporate taxes.
    In the United States, orders for durable goods - which are
manufactured goods meant to last three years or more -
unexpectedly rose in April, and consumer confidence perked up in
May, backing views of a rebound in economic growth.
 
    Exporters were mixed, with Toyota Motor Corp rising
0.5 percent, while Honda Motor Co fell 1 percent and
Nikon Corp dropped 0.7 percent.
    The dollar was at 101.98 yen, within striking
distance of a two-week high of 102.145 hit on Tuesday.
    The broader Topix added 0.3 percent to 1,198.73,
while the new JPX-Nikkei Index 400 advanced 0.3
percent to 10,932.13.

 (Editing by Chris Gallagher)
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