Nikkei rises 3.1 pct, gives up some gains on yen
Japan`s Nikkei average rose...
Japan`s Nikkei average rose 3.1 percent on Tuesday after a surge in U.S. shares on Washington`s decision to rescue Citigroup (C.N: Quote, Profile, Research, Stock Buzz), though exporters such as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) gave up some gains as the yen edged up against the dollar, according to Reuters.
Mitsui Fudosan Co (8801.T: Quote, Profile, Research, Stock Buzz) and other property developers climbed after a brokerage upgraded the company and some others in the industry, while Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) and other banks gained in the wake of the massive U.S. bailout of Citigroup [ID:nN20396479].
Wall Street soared on Monday, posting its best two-day run since the aftermath of the 1987 stock market crash, as news of the Citigroup bailout spurred an enormous relief rally. Tokyo shares climbed more than 5 percent during morning trade but fell back in early afternoon as the market ran out of steam for further rises and the yen crept up against the dollar
"Though U.S. shares may rise a bit more, these gains are likely to be limited by concern about more bad indicators that will show the poor state of the economy," said Yutaka Miura, senior technical analyst at Shinko Securities.
"As for Citi, they just injected funds in October, so this raises the possibility that other places may need more funds, too, even as the economy worsens."
The benchmark Nikkei .N225 rose 241.25 points to 8,152.04 in its second straight trading day of gains. Earlier it rose as high as 8,356.83.
The broader Topix .TOPX was up 1.3 percent to 813.33.
Mitsui Fudosan Co climbed 7.4 percent to 1,279 yen and other real estate developers also leapt after UBS upgraded the company and some others in the industry to "buy" from "neutral".
UBS analyst Toshihiko Okino wrote in a note to clients that the real estate investment market might pick up gradually from December, while major real estate firms` share prices reflect an overly pessimistic scenario.
Among other developers, Mitsubishi Estate Co (8802.T: Quote, Profile, Research, Stock Buzz) shares, which sank to a 5-year low last week, climbed 8 percent to 1,255 yen. Sumitomo Realty & Development Co (8830.T: Quote, Profile, Research, Stock Buzz) jumped 11.5 percent to 1,287 yen.
Mizuho Financial Group was up 6.3 percent at 241,000 yen and No. 3 bank Sumitomo Mitsui Financial Group (8316.T: Quote, Profile, Research, Stock Buzz) up 6.2 percent to 324,000 yen. Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) climbed 1.4 percent to 499 yen.
Canon was up 6.5 percent at 2,870 yen, while Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) gained 3.1 percent to 2,010 yen.