Nikkei rises 1.3 percent as heavyweights gain

By Staff
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Google Oneindia News

TOKYO, Sep 13 (Reuters) The Nikkei average rose 1.28 percent on Wednesday, recovering from a one-month closing low the previous day as heavyweight stocks such as Advantest Corp. led the market higher following a rally in U.S. shares.

The market was driven higher mainly by buying from arbitrage traders eager to fill the gap between Nikkei index futures traded in Chicago and Osaka.

Key December Nikkei futures traded in Chicago closed at 15,955 on Tuesday, up a hefty 305 points from the Osaka finish.

Tatsuyuki Kawasaki, director of Kaneyama Securities' equities trading division, said the cash market was following the index futures market, a peculiar relationship reflecting a lack of fresh fundamental news at home.

''It's as if a child totally relies on his mother. And the mother, the index futures market, looks at the U.S. markets,'' he said. ''The situation will remain the same until visibility increases on corporate earnings.'' The Nikkei was 201.93 points higher at 15,921.27 as of 0055 GMT, recouping more than half the 361-point loss of the previous two sessions.

The broader TOPIX index was up 1.12 percent at 1,603.80.

Chip-testing equipment maker Advantest jumped 3.7 percent to 11,670 yen, and another Nikkei heavyweight, Fast Retailing Co.

Ltd., rose 2 percent to 10,570 yen.

Truck maker Hino Motors Ltd. gained 2.6 percent to 660 yen. The Nihon Keizai business daily said Hino plans to tie up with Swedish rival Scania to expand sales channels in Asia and South America, aiming to cope with growing global competition posed by leader DaimlerChrysler AG SUMCO Corp., the world's No. 2 silicon wafer maker, climbed 4.5 percent to 8,310 yen after the company said on Tuesday its first-half net profit grew more than fivefold and raised its full-year forecast beyond the market consensus thanks to strong demand for silicon wafers.

REUTERS VJ PM0804

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