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Japan's Nikkei seesaws in choppy trade ahead of U.S. jobs data
October 22, 2013 / 2:42 AM / 4 years ago

Japan's Nikkei seesaws in choppy trade ahead of U.S. jobs data

* Nikkei up 0.2 pct; Topix flat
    * Investors await delayed US Sept payroll data
    * Nikkei unlikely to top 15,000 soon - traders

    By Tomo Uetake
    TOKYO, Oct 22 (Reuters) - Japan's Nikkei stock average
seesawed on Tuesday morning ahead of a key U.S. jobs report - an
outcome eagerly awaited by global markets for clues on when the
Federal Reserve will begin scaling back its stimulus.
    The payrolls data for September, delayed by the 16-day U.S.
government shutdown, will be released later in the day.
    The benchmark Nikkei added 0.2 percent to 14,716.23
in a choppy session after trading as low as 14,641.78. The index
closed at a three-week high of 14,693.57 on Monday. 
    SoftBank Corp, the most traded stock by turnover on
the main board, advanced 1.5 percent to a 13-year high, with a 
trader saying that Google Inc's strong earnings bode
well for China's biggest e-commerce company Alibaba . Softbank has a 30 percent stake in Alibaba.
    "While institutional investors are sitting on the sideline
waiting for the U.S. data, hedge funds and retail investors are
actively trading mid-caps and small-caps," said Mitsushige
Akino, chief fund manager at Ichiyoshi Asset Management.
    Many analysts expect the U.S. central bank to delay
unwinding the $85 billion-a-month programme given the government
shutdown and the possibility of another bitter U.S. budget fight
between Democrats and Republicans early next year.
    Some traders said the upcoming U.S. payrolls data for
September is unlikely to dispel uncertainties on the Fed's
policy given that the data does not shed light on the impact of
a government shutdown.
    "Until we see October payrolls data in November and get
conviction that the Fed's tapering will be next year, the Nikkei
is unlikely to rise above 15,000," said Ichiyoshi's Akino.
    The broader Topix was flat at 1,212.37 in relatively
light trade, with volume at 33.1 percent of its full daily
average for the past 90 trading days.
    The market is supported by expectations of strong earnings
results on the back of a recovery in the Japanese economy.
    Mitsui Mining & Smelting Co Ltd rose 1.5 percent
after the company boosted its earning estimates on Monday,
citing strong sales. 
    But market players also said some shares fell in the past
few sessions even after solid earning results, pointing to risk
investors expectations may have gone a bit too high.
    Toyota Motor Co rose 1.0 percent while Fuji Heavy
Industries fell 1.2 percent after Barclays put an
'overweight' rating on the former and an 'underweight' on the
latter.
    The sea transport sector subindex fell 1.4 percent
on profit-taking and was the worst sectoral performer on the
Topix, giving up some of the 3.1 percent rise in the previous
three sessions.

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