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4 years ago
Nikkei bounces as China cbank comments allay credit crunch fears
June 26, 2013 / 1:36 AM / 4 years ago

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
    "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
    "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
    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
    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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