INSUBCONTINENT EXCLUSIVE:
TOKYO: Japanese shares rallied for a second day on Wednesday, buoyed by gains in steelmakers and metal producers, as markets cheered
Beijing's pledges of a more vigorous fiscal policy.
The benchmark Nikkei share average rose 0.46 per cent to 22,614.25, erasing more than
half of its losses from Monday after media reports that the Bank of Japan may adjust its policy.
Still, the upside was seen as limited for
now with the 23,000-mark considered a stubborn resistance for the Nikkei.
Some sectors of the market "have certainly got a boost from the
news of China stimulus plans," said Yuya Fukue, trader at Rheos Capital Works
"I think the hopes will continue to provide a tailwind for some time."
The biggest beneficiaries included steelmakers , non-ferrous metal
firms and machinery makers , which rose 2.0 per cent, 2.3 per cent and 1.0 per cent, respectively.
They have been among the worst hit by
concern over a Sino-US trade war.
Among them, JFE Holdings rose 3.0 per cent and Sumitomo Metal Mining 3.8 per cent.
Their rebound came
after Chinese state radio, citing the cabinet, said earlier this week that Beijing would adopt a more vigorous fiscal policy to help tackle
external uncertainties without resorting to strong policy stimulus.
Bucking the overall trend, Yamato Holdings dropped 1.7 per cent after
the logistics provider announced it overcharged corporate clients by about 1.7 billion yen ($15 million) for moving services, prompted by a
whistleblower's alert.
The Nikkei's heavyweight Fast Retailng fell for the third trading day in a row, down 0.7 per cent, hit by
speculation that the Bank of Japan could wind back its purchases in the Nikkei-linked exchange-traded funds.
Reuters and other media
reported over the weekend that the BOJ could debate changes in its monetary policy at its meeting early next week, with potential tweaks to
its interest rate targets and stock-buying techniques on the table.
The broader Topix gained 0.38 per cent to 1,753.48, while the JPX-Nikkei
Index 400 was up 0.39 per cent at 15,517.35.
Mitsubishi Motor dropped 3.9 per cent on profit-taking, pulling away from nine-month highs
The automaker announced earnings that beat market expectations on Tuesday.
The fiscal first-quarter earnings season enters full swing on
Wednesday, with about 40 companies, including Shin-Etsu Chemical, Nidec and Fanuc, announcing results.
