Nikkei rises 1.3 pct on U.S. optimism, exporters outperform

by **Cals** Mon 11 Nov 2013, 14:26

Business & Markets 2013

Written by Reuters

Monday, 11 November 2013 10:19

TOKYO (Nov 11): Japan's Nikkei share average jumped 1.3 percent on Monday morning, rebounding from the previous session's selloff after an unexpectedly strong U.S. jobs report put to bed any lingering concerns about the pace of economic recovery.
U.S. employers took on 204,000 new employees last month, almost double the expected 125,000 and defying expectations that the partial U.S. government shutdown would hamper job growth.
The strong data also raised the prospect the Federal Reserve may soon decide to start winding down its $85 billion-a-month bond-buying programme, though Fed Chairman Ben Bernanke suggested the U.S. central bank was in no hurry to taper.
The Nikkei gained 182.79 points to 14,269.59 in mid-morning trade, with initial resistance seen around its 25-day moving average of 14,306.51.
It fell 1.0 percent on Friday. Exporters led the way after the yen weakened, with Honda Motor Co up 1.8 percent, chip-related shares Tokyo Electron Ltd adding 2.1 percent and Advantest Corp soaring 3.0 percent.
The dollar jumped around 1 percent against the yen on Friday and last stood at 99.17 after the upbeat U.S. jobs data bolstered the case for the Fed to scale back stimulus as early as next month.
The Topix rose 0.7 percent to 1,184.80.
"Investors were relieved to see that the U.S. economic recovery is on track," said Tsuyoshi Nomaguchi, managing director at investment strategy at Daiwa Securities.
"For this week, the market moves are likely to depend on comments from Fed officials including Janet Yellen."
This week brings several speeches by Fed officials, but key will be a hearing Thursday before the U.S. Senate Banking Committee on the nomination of Fed Vice Chair Yellen to replace Bernanke.
Elsewhere, Citizen Holdings Co jumped 9.8 percent to a 5-year high and was the third biggest percentage gainer after the watchmaker raised its forecasts.
It now expects an operating profit for the year ending March of 21 billion yen, from the previously forecast 19.5 billion yen.
Among the notable losers, Olympus Corp stumbled 6.3 percent to a one-month low after it said it expects an operating loss of 5 billion yen in the digital camera business for the year through March, compared to a previously forecast break-even guidance. - Reuters