April 17, 2012 / 3:15 AM / 6 years ago

Nikkei edges up after steep falls, Toshiba Tec jumps

* Nikkei adds 0.2 pct after Monday's 1.7 pct drop
    * Toshiba Tec jumps on report of IBM terminal unit buy
    * Gree surges after Merrill Lynch ups price target

    By Dominic Lau	
    TOKYO, April 17 (Reuters) - Japan's Nikkei share average
recovered on Tuesday after the previous session's sharp losses,
while Toshiba Tec Corp outperformed after a media
report said it would buy IBM Corp's point-of-sale terminal
    Toshiba Tec, a unit of Toshiba Corp, jumped as much
as 10.8 percent after the Nikkei newspaper said the Japanese
firm would buy the IBM business for 70 billion yen
($870.9 million) and would strengthen its cloud computing
services. Toshiba gained 0.9 percent.	
    By the midday break, the Nikkei advanced 0.2 percent
to 9,487.59 after shedding 1.7 percent on Monday, falling below
the psychological key level of 9,500.	
    "There are a lot of concerns in the global financial market
but we don't see signs of contagion," said Hisao Matsuura,
equity strategist at Nomura.	
    Matsuura said Spain's banking system was stable and the
situation was different from last year when concerns over
Greece's default roiled financial markets.	
    Data on Friday showed Spanish banks had increased their
reliance on cheap loans from the European Central Bank as they
were virtually shut from the wholesale credit market, raising
fears that Spain would be further sucked into the euro zone debt
    The broader Topix was up 0.2 percent at 805.56 on
    Trading volume on the main board was thin after the halfway
point, at less than 38 percent of its full daily average for the
past 90 days.	
    Japanese tech component makers were in demand after Bank of
America Merrill Lynch raised its price targets on some stocks,
including Murata Manufacturing Co Ltd, Taiyo Yuden Co
Ltd, Hirose Electric Co Ltd and Kyocera Ltd
. All four recorded gains of between 0.8 and 2.5
    Merrill Lynch also raised its price target on mobile social
gaming firm Gree Inc and maintained its "buy" rating.	
    The stock rose 6.8 percent and was the most heavily traded
stock on the main board by turnover, in a likely short squeeze
as data from Data Explorers showed more than 88 percent of the
stock that is available to be borrowed had already been on loan
as of April 13.	
    A trader said investors concerned that the market is
settling in a range with a break-out possible in either
direction could buy both a Nikkei call and put spread to protect
their positions.	
    The Nikkei has fallen 5.9 percent so far this month after
rallying more than 19 percent in January-March, its best first
quarter performance in 24 years.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below