Nikkei jumps more than 3 pct as credit fears ease
TOKYO (Reuters) - Japan's Nikkei average surged more than 3 percent on Wednesday, topping the 13,000 level for the first time in three weeks as credit fears eased following a capital boost by Lehman Brothers LEH.N.
The dollar's overnight surge against the yen also propelled exporters higher, with Honda Motor Co Ltd (7267.T) jumping nearly 7 percent.
"Concerns about the financial system have eased, and Japanese stocks have been oversold compared with those in the U.S. and Europe," said Naoteru Teraoka, general manager of investment management at Chuo Mitsui Asset Management. "It's a swing back from extreme anxiety."
The benchmark Nikkei .N225 ended the morning session up 3.3 percent at 13,079.11. The broader TOPIX gained 3.3 percent to 1,271.23.
U.S. stocks and the dollar jumped after strong demand for a Lehman Brothers share offering eased fears it was headed towards a fate similar to Bear Stearns BSC.N and raised optimism that the worst of the credit crisis may be over.
A $19 billion write-down by UBS also reinforced the view that banks were aggressively wiping their books clean of soured investments tied to the slumping U.S. housing market.
Financial shares rose sharply, with Japan's second-largest bank Mizuho Financial Group (8411.T) jumping 8.7 percent to 399,000 yen. Japan's largest brokerage Nomura Holdings Inc (8604.T) soared 8.3 percent to 1,614 yen.
Still, the gains were seen limited as few saw a real end yet to the global credit market turmoil.
"Looking back later, a string of events in March might prove to be a turning point, but we cannot be sure at this moment," said Chuo Mitsui Asset Management's Teraoka.
"Worries about the U.S. economy remain. The ISM was better than expected but it still showed a contraction."
The Institute for Supply Management said its index of U.S. factory activity was 48.6 in March, better than 47.5 foreseen by economists but below the level of 50 which separates growth from contraction.
"I think the market is already at the day's high by now. There are few domestic factors to drive it up further," said Kenichi Hirano, operating officer at Tachibana Securities.
EXPORTERS HIGH
Honda rose 6.7 percent to 3,090 yen and digital camera maker Canon Inc (7751.T) climbed 4.9 percent to 4,930 yen, the two biggest contributors to the Nikkei.
Shares of exporters gained after the dollar jumped to 102 yen on Tuesday for the first time since early March. It traded at 101.70 yen JPY= by late morning. Continued...
