Nikkei up 1.1 pc, exporters and financials gain

TOKYO: Japan’s Nikkei average rose 1.1 percent on Thursday, led by exporters such as Canon Inc on a rebound in the dollar versus the yen, while financial stocks jumped after surprisingly strong results from a U.S. bank helped ease credit worries. Major brokerages, including No. 1 Nomura Holdings gained more than 5 percent, positioning the market for its biggest percentage gain in one month.

“With the subprime problems still out there, it does not mean a trend change, but we are seeing a short-term rebound led by recently battered banks and exporters,” said Norio Shimura, deputy head of the equity department at Chuo Securities.

Investors felt relatively comfortable about buying exporters after the dollar gained ground back to around 105 yen from around 103 yen a day earlier, he added. The benchmark Nikkei ended the morning up 141.59 points at 12,902.39.

The broader Topix gained 1.5 percent to 1,268.00. US stocks rallied more than 2 percent on Wednesday, powered by the best day for banks in 16 years as unexpectedly robust earnings from Wells Fargo & Co helped ease concerns about a credit crisis spiralling out of control.

But analysts said caution was limiting the market’s advance. “The Tokyo market is not quite tracking the sharp gains on Wall Street which underscores the strong anxiety felt by investors,” said Kazutaka Oshima, chief strategist at Rakuten Securities.

“Wells Fargo did give a boost to the market, but this bank is not investors’ biggest concern. They are waiting for Merrill and Citi,” he said, referring to earnings by Merrill Lynch later in the day and Citigroup on Friday.