* Nikkei regains key 9,500 level
* Exporters, financials in demand
TOKYO, April 18 (Reuters) – Japan’s Nikkei share index
climbed 1.6 percent to regain the key 9,500 level on Wednesday
after robust U.S. corporate earnings, a well-received Spanish
debt sale and an upbeat German economic sentiment survey.
Improved global risk appetite took the wind out of the yen,
further boosting the appeal of Japanese exporters, which are
strongly represented in the Nikkei benchmark.
The Nikkei was up 151.95 points at 9,616.66 after
falling below the psychologically important 9,500 mark on
Monday.
“You have a bounce in the U.S. markets. You have some sense
of policymakers in Europe who are keen to stabilise concerns
there. Data wasn’t horrible in the U.S. … Earnings were good
to mixed,” said Stefan Worrall, director of equity cash sales at
Credit Suisse in Tokyo.
“You have a huge sell-off, so it’s not surprising that it
has a bounce,” he added.
Toyota Motor Corp gained 2.5 percent, industrial
robot maker Fanuc Corp rose 2.4 percent and TDK Corp
climbed 4.2 percent.
The broader Topix index advanced 1.7 percent to
816.90.
Financials were also in demand as concerns over Spain’s
ability to finance its debt eased somewhat after the country
raised more funding than planned at its bill auction on Tuesday.
Sentiment also improved after German analyst and investor
confidence rose unexpectedly in April to a high not seen since
June 2010, while the U.S. company earnings season has had a
surprisingly strong start.
Japan’s top investment bank Nomura Holdings surged
2.9 percent, while megabanks Mitsubishi UFJ Financial Group
, Sumitomo Mitsui Financial Group and Mizuho
Financial Group gained between 2.4 and 3.1 percent.
On Tuesday, Coca-Cola, Goldman Sachs, Johnson
& Johnson, International Business Machines Corp
and Intel reported profits that beat analysts’
estimates.
The Nikkei has fallen 4.6 percent so far this month after
rallying more than 19 percent in January-March, its best first
quarter performance in 24 years.
Global investors’ appetite towards Japanese equities has
waned in April.
A monthly survey of asset managers by Bank of America
Merrill Lynch showed investor allocation in Japanese stocks fell
to 10 percent net underweight this month from 4 percent in
March, but still above February’s net 23 percent underweight.
