July 9, 2018 / 6:40 AM / 3 months ago

Nikkei rebounds to 1-week high after U.S. jobs data; Nissan tumbles

* Nissan tumbles ahead of emission briefing

* Rainfall impact on stock market limited - analysts

* Eisai jumps to record high after some brokers hike ratings

By Ayai Tomisawa

TOKYO, July 9 (Reuters) - Japan’s Nikkei share average rebounded to one-week highs on Monday as investors took heart from U.S. jobs growth, while Eisai extended its gains to its daily-limit high on optimism for its Alzheimer’s drug.

However, Nissan Motor Co skidded 4.6 percent to 1,003.5 yen, the lowest closing level since November 2016 after the company said it would hold a briefing at 0800 GMT regarding procedures to measure vehicle exhaust gas at its domestic plants.

Nissan declined to give further details. Japanese companies have admitted to several cases of data tampering over the past year, tarnishing the country’s reputation for high-quality, efficient manufacturing.

Analysts say investors were keeping a watchful eye the unprecedented rainfall that lashed western Japan over the weekend, killing at least 88 people and shuttering some factories.

The strong U.S. jobs data on Friday helped lift the Nikkei to close 1.2 percent higher at 22,052.18, the highest closing level since June 29.

Automakers including Mazda Motor Corp and Daihatsu Motor Co suspended operations at several plants on Saturday, with Mazda shares up 0.2 percent.

Electronics maker Panasonic Corp said one plant in Okayama, western Japan, could not be reached because of road closures. Panasonic shares dropped 0.5 percent.

“If the rainfall affects supply chains in the mid-to-long term, there will be selling in impacted stocks. Otherwise the overall impact should be limited,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

For now, an escalating trade war between China and the United States took a back seat as investors cheered strong U.S. payrolls data.

Tech shares and banks gained ground, with TDK Corp rallying 4.2 percent, Advantest adding 2.5 percent and Mitsubishi UFJ Financial Group advancing 1.6 percent.

Eisai Co soared 16 percent to a daily limit high of 10,710 yen, which is also a record high, extending its surge from Friday. The strong rally came as several brokerages upgraded the stock rating after the Japanese drugmaker and Biogen Inc said that the final analysis of a mid-stage trial of their Alzheimer’s drug showed positive results for patients who received the highest dose.

Nomura Securities hiked its rating to ‘buy’ from ‘neutral’ and raised the target price to 15,000 yen from 8,400 yen.

“We take a favorable view of high growth prospects for the company as a manufacturer of two promising Alzheimer’s drug candidates and Lenvima, for use in combination with cancer immunotherapy Keytruda,” Nomura analysts wrote in a report to clients.

The broader Topix advanced 1.2 percent to 1,711.79. (Editing by Shri Navaratnam)

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