Nikkei rebounds

Japan's Nikkei average inched up 0.2 percent on Monday as investors, reassured by central bank moves to inject funds into the banking system, bought recently battered stocks, but falls in bank shares helped the broader TOPIX index end at its lowest in eight months.
Shares of NEC Electronics Corp jumped after a report that it aims to double its sales in China, while energy-related stocks gained ground after commodity prices rebounded.
To alleviate the money market squeeze caused by spreading US subprime mortgage troubles, major central banks have injected sizable amounts of overnight funds, which many market participants see as a positive move.
"I don't expect a V-shaped recovery and there is a possibility that the market may face another credit shock," said Jun Nishizaki, chief portfolio manager Nissay Asset Management. "But as central banks have taken action, it looks like things are under control."
The Nikkei added 35.96 points to 16,800.05 while the TOPIX index lost 0.08 percent, or 1.29 points, to 1,632.64, the lowest close since December 2006. On Monday, the Bank of Japan pumped 600 billion yen of funds into the banking system in a one-week operation as tight conditions in money markets abroad spilled over into Japan's call market. The move followed a 1 trillion-yen injection of overnight funds the central bank supplied on Friday.
Nishizaki said trade remained active, which is a good sign that some investors, especially retail investors, are keen to buy on dips. Indeed, trade was active with 2.5 billion shares changing hands on the Tokyo exchange's first section, compared with a daily average volume of 2.1 billion shares in July. Advancing stocks beat declining ones by 942 to 719.
"I thought that retail investors would have sold their holdings, but we have seen money coming into our funds. People like that are supporting the market," he said. Investors bought back stocks that appeared to have been oversold in last week's sell-offs. Kyocera, an electronics parts maker, added 2.9 percent to 10,720 yen, recouping some its 7.6 percent decline from the last two sessions, and Shin-Etsu Chemical Co Ltd rose 2.9 percent to 8,250 yen, snapping a four-day losing streak.
In the non-ferrous metals sector, shares of top-ranked smelter Mitsubishi Materials Corp surged 9.8 percent to 639 yen while Sumitomo Metal Mining Co Ltd climbed 4.4 percent to 2,380 yen.
Shipping firm shares also gained. Kawasaki Kisen Kaisha Ltd, which has lost 13 percent this month, rose 3.9 percent to 1,485 yen, while Mitsui O.S.K. Lines Ltd added 1.5 percent to 1,623 yen. Bridgestone Corp, the world's biggest tyre maker by revenue, added 2.5 percent to 2,620 yen after the Nikkei business daily reported that the company plans to boost output capacity in emerging markets such as India and Turkey.
In the banking sector, Mizuho Financial Group dipped 0.3 percent to 705,000 yen even tough Japan's second-largest bank said its losses on subprime-related investments total only about 600 million yen ($5.07 million).
After the market closed, property investment firm KK DaVinci Advisors said group net profit rose 88 percent to 6.07 billion yen for the six months to June thanks to its strong property fund business. The market largely ignored government data showing that Japan's economy grew 0.1 percent in April-June from the previous quarter, falling just short of market expectations for a 0.2 percent rise.