January 29, 2014 / 6:25 AM / 4 years ago

Nikkei jumps most in 5 months after Turkey rate hike

By Hideyuki Sano
    TOKYO, Jan 29 (Reuters) - Japan's Nikkei share average
jumped 2.7 percent on Wednesday, its biggest gain in almost five
months, after Turkey's huge hike in interest rates halted
selling in emerging markets and bolstered risk appetite.
    The Nikkei rose to 15,383.91, moving away from a
2-1/2 month low just below 15,000 set on Monday and snapping a
four-session losing streak.
    But Advantest plunged 4.4 percent after the maker
of chip testing equipment slashed its annual guidance,
underscoring the risk of more disappointment as many Japanese
companies report earnings over the next few weeks.
    The Nikkei is still down 5.6 percent so far this year,
underperforming many of its regional peers.
    "This is just an unwinding of risk-off trades. But the
rebound is not that strong and it is unlikely to be
sustainable," Yasuo Sakuma, portfolio manager at Bayview Asset
Management, said of Wednesday's rise.
    "Looking at earnings so far, I can say that expectations had
been higher (than the actual results). I doubt there will be any
boost from earnings."
    Traders said buying was driven by short covering by
short-term players, while many investors remained cautious ahead
of the U.S. Federal Reserve's meeting at which it is widely
expected to trim its asset-buying programme by another $10
billion a month.

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