Nikkei rises again, underpinned by China stimulus hopes

  • Reuters
  • Stock Market News
Nikkei rises again, underpinned by China stimulus hopes
Credit: © Reuters.

* Cyclical stocks up on China stimulus hopes

* Nikkei has a resistance level at 23,000

* About 40 companies to announce earnings on Wednesday

By Tomo Uetake

TOKYO, July 25 (Reuters) - Japanese shares rallied for a second day on Wednesday, buoyed by gains by steelmakers and metal producers, as markets cheered Beijing's pledges of a more vigorous fiscal policy.

The benchmark Nikkei share average .N225 rose 0.45 percent to 22,610.83 by the mid-morning break. However, the upside was seen as limited for now as the 23,000-mark has been a stubborn resistance for the Nikkei.

On Monday, the Nikkei dropped 1.3 percent, then on Tuesday it advanced 0.5 perecent.

Some sectors of the market "have certainly got a boost from the news of China stimulus plans," said Yuya Fukue, trader at Rheos Capital Works. "I think the hopes will continue to provide a tailwind for some time."

On Monday, Chinese state radio, citing the cabinet, said that Beijing will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus. were led by iron and steel, non-ferrous metal and machinery companies, with JFE Holdings 5411.T , Sumitomo Metal Mining 5713.T climbing 3.3 percent 3.9 percent, respectively.

Bucking the overall trend, Yamato Holdings 9064.T dropped 1.8 percent after the logistics provider announced it overcharged corporate clients by about 1.7 billion yen ($15 million) for moving services, prompted by a whistleblower's alert.

The broader Topix .TOPX gained 0.45 percent to 1,754.74 by midday, while the JPX-Nikkei Index 400 .JPXNK400 was up 0.47 percent at 15,529.90.

Mitsubishi Motor 7211.T dropped 3.8 percent from nine-month highs marked the previous day on profit-taking although its earnings announced the previous day beat market expectations. first-quarter earnings season enter full swing on Wednesday, with about 40 companies, including Shin-Etsu Chemical 4063.T , Nidec 9594.T and Fanuc 6954.T , announcing results.

($1 = 111.29 yen)

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