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Nikkei jumps 2.7 pct, hits 6-wk high on bank hopes

Mon Mar 23, 2009 1:23am EDT

Stocks

   

* Nikkei up 2.7 pct as exporters gain on a weaker yen

Stocks  |  Japan

* Nikkei hits highest point in six weeks

* Hopes for U.S. financial plans help buoy market

TOKYO, March 23 (Reuters) - Japan's Nikkei share average hit a six-week high on Monday, with banks including top lender Mitsubishi UFJ Financial Group (8306.T) jumping on optimism about U.S. plans to further help a strained financial system, while a weaker yen helped exporters.

The United States on Monday offered generous financing for private investors to help cleanse banks of up to $1 trillion in toxic assets that are blocking lending and worsening a deep U.S. recession. [ID:nWEQ000809]

"The U.S. government's toxic asset plan is clearly a positive factor for global stock markets as it is one step forwards in tackling the U.S. banking crisis," said Koichi Sekiya, equities strategist at Aizawa Securities. "Hopes for the plan have boosted the Nikkei."

The benchmark Nikkei .N225 gained 2.7 percent or 215.22 points to 8,161.18. It rose more than 3 percent at one stage, hitting its highest point since Feb. 9.

The broader Topix climbed 2.8 percent to 785.85.

Hopes for the U.S. plan boosted U.S. stock futures SPc1 by 1.5 percent as investors appeared more willing to take on risk. [ID:nHKG167188]

Shares of MUFG, Japan's biggest bank, jumped 4.7 percent to 512 yen. It said on Monday it planned to close 50 branches and cut 1,000 jobs to continue slimming down its operations since its 2005 merger, as a tumbling stock market depletes its earnings. [ID:nT168347]

No.2 Mizuho Financial Group (8411.T) gained 4.8 percent to 219 yen and third-ranked Sumitomo Mitsui Financial Group (8316.T) shot up 6.5 percent to 3,770 yen.

Japanese energy-linked shares such as trading firms including Mitsubishi Corp (8058.T) jumped after oil prices rose more than 1 percent towards $53 a barrel CLc1 amid hopes for a speedy recovery of the U.S. economy. [O/R]

Exporters gained as the dollar was trading around 96.15 yen JPY=, after falling as far as 93.55 on Thursday. [FRX/] Investors welcome a weaker yen as it boosts exporters' profits when repatriated.

Electronics parts maker Kyocera Corp (6971.T) added 2.9 percent to 6,760 yen, while industrial robot maker Fanuc Ltd (6954.T) advanced 3.5 percent to 6,850 yen. The two stocks were the top positive contributors to the Nikkei 225.

Trading houses, which are major dealers in energy and have stakes in oil and gas projects, gained on higher crude prices.

Mitsubishi, Japan's largest trading house, surged 7.3 percent to 1,317 yen, and Mitsui & Co (8031.T) soared 10.3 percent to 982 yen.

Oil and gas field developer Inpex (1605.T) climbed 5.1 percent to 719,000 yen. (Reporting by Rika Otsuka; Editing by Hugh Lawson)



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