Nikkei climbs 1.5 pct as Kyocera, techs gain

Tokyo, May 31: The Nikkei average climbed more than 1.5 per cent on Thursday as investors bought back shares of technology firms such as Kyocera Corp. after gains on Wall Street eased concerns about China's stock market sell-off.

Shares of real estate investment firm Risa Partners rose 4.2 per cent to 373,000 yen. The company's president told Reuters on Wednesday it is likely to buy an asset management or financial services company in the next three years to expand its business.

Market participants said the rise may also be a signal that investors are starting to reevaluate Japanese equities. The Nikkei has inched up just 3.5 per cent so far this year, making it one of the worst performing stock benchmarks in the world.

Participants had worried that global markets were set for another plunge after China's benchmark Shanghai Composite Index fell 6.5 per cent on Wednesday.

But a rally on Wall Street erased much of the immediate concerns, said Shigemi Nonaka, a special adviser at Polestar Investment Management.

''The U.S. wasn't hit by the Chinese sell-off, so that boosted sentiment in Japan,'' Nonaka said.

''If there is a global sell-off, Japan is likely to see the least amount of damage. The markets have yet to advance this year.'' The Nikkei was up 266.03 points at 17,854.29.

The broader TOPIX index gained 1.19 per cent to 1,754.31.

Shares of technology firms were among the advancers. Kyocera added 3 per cent to 11,970 yen. TDK Corp. gained 2.7 per cent to 11,080 yen.

Reuters>