Tokyo's Nikkei average rose 0.7 percent to a seven-month closing high on Thursday as brokerages rallied on news of a possible merger between Daiwa Securities and Sumitomo Mitsui Financial Group. But some tech stocks followed their US peers lower, keeping the overall market in check, and Internet conglomerate Softbank Corp fell after posting a wider third-quarter operating loss. The Nikkei closed up 80.21 points at 11,553.56, its highest close since July 13. The broader TOPIX index rose 0.42 percent to 1,160.72, also its highest since July 13.
For the week, it gained 1.7 percent, marking the biggest weekly percentage rise since the week of December 24.
Japanese stock markets will be closed on Friday for the National Foundation Day holiday.
Views are mixed on the market's outlook after North Korea said late on Thursday that it had manufactured nuclear weapons for self-defence, sparking security concerns.
Next week's Japanese gross domestic product data for October-December, which is expected to show the economy posted another quarter of virtually flat growth, could also put buyers in a reluctant mood.
Earlier on Thursday, financial sources said SMFG, Japan's third-biggest lender, was considering a merger with Daiwa Securities, the second-ranked brokerage, to create a financial conglomerate with assets of more than $1 trillion, although the firms have not yet held detailed talks.
Analysts said the news fanned optimism over further consolidation in Japan's financial industry, especially among brokerages and consumer finance firms.
The brokerage sector was the best performer on the main board, with the sector subindex ISECU.rising 3.8 percent.
Daiwa Securities rose 5.3 percent to 740 yen.
Among its rivals, Nikko Cordial Corp jumped 7.2 percent to 535 yen and Nomura Holdings added 3.2 percent to 1,432 yen.
SMFG, up 2.7 percent at 717,000 yen, was the most active issue by value.
Mitsubishi Tokyo Financial Group (MTFG) was up 2 percent at 989,000 yen. MTFG, Japan's second-biggest bank, has agreed to merge with fourth-ranked UFJ Holdings to become the world's biggest bank with assets worth $1.85 trillion.
Sumitomo Trust & Banking Co Ltd was up 2.2 percent at 698 yen. President Atsushi Takahashi told Reuters in an interview on Thursday his firm would remain independent even as SMFG eyes expansion through a take-over of Daiwa Securities.
SMFG and Sumitomo Trust have ties through the Sumitomo family of companies.
Earnings-related news also triggered interest.
Softbank fell 2.9 percent to 4,630 yen, hurt by disappointing subscription numbers for its new cut-rate phone service.
Broadband wholesaler eAccess Ltd, vying with Softbank to become a mobile phone operator, rose 2 percent to 104,000 yen after it revised up its profit outlook.
Trading volume on the first section declined to 1.863 billion shares from Thursday's 1.915 billion, the biggest total since December 10. Advancers slightly outpaced decliners 741 to 729.
Comments
Comments are closed.