Reuters: Financial Services and Real Estate: Nikkei gains 1 percent, closes in on 1-yr high

Reuters: Financial Services and Real Estate Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Nikkei gains 1 percent, closes in on 1-yr high Apr 2nd 2012, 01:30 Sun Apr 1, 2012 9:30pm EDT * Nikkei nears one-year peak * China PMI, U.S. consumer spending data lifts index * Blue-chips rally after correction last week * Domestic investors keen to buy as new FY begins * Automakers get boost from BOJ tankan By Mari Saito TOKYO, April 2 (Reuters) - Japan's Nikkei average looked set to snap a three-day losing streak on Monday after stronger-than-expected data from China and the United States eased worries over a global economic slowdown, wile a softer yen underpinned sentiment. Blue-chip shares rallied after a slight market correction last week, with Japan's No. 1 investment bank, Nomura Holdings , jumping 3.6 percent and China-reliant industrial robot maker Fanuc gaining 2.9 percent. The benchmark Nikkei added 1 percent to 10,184.82, edging closer to the one-year high near 10,255 hit last Tuesday. The Nikkei on Friday ended the quarter up more than 19.3 percent, logging its best first-quarter performance in 24 years. Fujio Ando, senior managing director at Chibagin Asset Management, said domestic investors were stepping in to buy equities as Monday marked the first trading day of the new financial year. "Investors are buying off the bat ... I think they're shrugging off economic concerns on Europe and China and concentrating on companies that are expected to benefit from Japan's reconstruction, while production by exporters is also recovering from last year's disasters." A closely watched Bank of Japan survey showed major manufacturers' sentiment unchanged in the first quarter, however, in a sign that Japanese manufacturers remain worried about the yen's strength. The headline index for business sentiment was minus 4 in March, lower than the median market forecast for minus 1. "The tankan was unexpectedly cautious ... but considering the yen has weakened recently, corporate earnings are expected to improve greatly," said Masayuki Doshida, senior market analyst at Rakuten Securities. "But as we go into an earnings-driven market, I do think the forex rate is not enough to push the index to pre-quake levels near 10,400. For that, we'll need to see U.S. earnings and more details about corporate outlook." The dollar last traded at 83.18 yen, steady after hitting a three-week trough of 81.82 on Friday. The broader Topix index was up 0.9 percent at 862.08. Japan's automakers got a boost from the BOJ survey, which showed big carmakers' sentiment index at plus 28, improving for the third straight quarter, lifted by the waning impact of last year's floods in Thailand and the government's subsidies for fuel-efficient car purchases. Honda Motor Co Ltd, Nissan Motor Co Ltd and Toyota Motor Corp rose between 1.4 and 3 percent. Strategists said China's official PMI (Purchasing Managers' Index), which jumped to an 11-month high of 53.1 in March, up from February's 51 and comfortably ahead of forecasts of 50.5, eased recent concerns over a hard landing in the world's second-largest economy. U.S. stocks closed their strongest quarter in more than two years on a positive note on Friday after data showed U.S. consumer spending climbed by the most in seven months in February, though personal income rose only modestly. Link this Share this Digg this Email Reprints

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