By Junko Fujita
TOKYO, April 7 (Reuters) - Japanese shares closed higher on Wednesday after posting their biggest drop in nearly two weeks in the previous session, while stocks of electronics makers gained after Toshiba Corp received a proposal to go private in a $20 billion deal.
The benchmark Nikkei share average .N225 ended up 0.12% at 29,730.79, while the broader Topix .TOPX climbed 0.67% to 1,967.43. On Tuesday, the Nikkei and Topix had closed 1.3% and 1.5% lower, respectively.
"Investors are buying stocks after yesterday's (Tuesday) sharp decline. This is a natural move," said Hideyuki Suzuki, general manager at investment research for SBI (NS: SBI ) Securities.
"The news on Toshiba has sent electronics makers higher. Investors could be thinking that if the Toshiba gets delisted, they would have to shift the money to its peers."
Toshiba 6502.T is considering a $20 billion offer from private equity firm CVC Capital Partners to take it private, a person familiar with the matter said, as the Japanese industrial conglomerate faces pressure from activist shareholders to improve governance. shares surged 18.28% to their daily limit after being untraded on a glut of buy orders.
Shipping firm Nippon Yusen 9101.T jumped 3.26% after raising its profit forecast for the year ended March to 200 billion yen ($1.82 billion) from 160 billion yen. peers Kawasaki Kisen 9107.T advanced 4.04% and Mitsui OSK Lines 9104.T climbed 2.62%.
Other cyclical shares also gained after the International Monetary Fund raised its global growth forecast to 6% this year, a rate not seen since the 1970s, from 5.5% earlier. Topix sub-index for steel makers .ISTEL.T gained the most among the 33 sub-indexes, followed by the shipping sector .ISHIP.T .
($1 = 109.6200 yen)
Nikkei share average .N225
The broader Topix .TOPX
(Editing by Uttaresh.V)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.