Nikkei up 0.7 pct, exporters rebound
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TOKYO, June 18 (Reuters) - Japan's Nikkei stock average rose 0.7 percent on Wednesday, with some exporters such as Honda Motor (7267.T) rebounding.
But investors focused mostly on individual stocks, such as car battery makers, that were up on specific news, due to a lack of bullish factors that could have led a broader rise.
NEC Electronics surged 15.6 percent after Goldman Sachs raised its rating to "buy" from "neutral", citing the possibility of the firm's earnings beating market forecasts on growth of advanced microchips used in TV sets and mobile handsets.
The market's rise defied overnight losses on Wall Street, but market analysts said investors were buying Japanese stocks only because there were few other attractive assets.
Kenichi Hirano, operating officer at Tachibana Securities, said assets that had attracted global money such as U.S. bonds, gold and emerging market stocks were losing their appeal.
"So, they are choosing Japanese shares by way of elimination," he said.
"But the Nikkei average is not cheap any more, with the price-earnings-ratio at 17, so investors cannot aggressively buy Japanese shares, either."
The benchmark Nikkei ended up 104.45 points at 14,452.82. The broader Topix gained 0.6 percent to 1,409.64.
U.S. stocks fell on Tuesday after a major brokerage warned that U.S. banks would have to raise as much as $65 billion in capital to shore up balance sheets weakened by the mortgage crisis. That had little impact on Japanese bank shares.
Chip maker NEC Electronics rose to 2,970 yen.
BATTERY SHARES UP
Amid the lack of market moving factors, investors' buying interest focused on specific sectors.
Battery makers rose sharply as investors see a promising future for next-generation car batteries along with an expected expansion of gasoline-electric hybrid and electric cars amid surging oil prices and worries about global warming.
Japan's largest auto battery maker, GS Yuasa Corp (6674.T), soared 12.5 percent to 595 yen, the biggest percentage gainer on the Nikkei. The firm has set up a joint venture with Mitsubishi Corp (8058.T) and Mitsubishi Motors Corp (7211.T) to produce lithium-ion batteries, a type of battery used in electric cars. Continued...
