(Corrects paragraph 5 time to 0600 GMT, not 1600 GMT)
TOKYO, Jan 29 (Reuters) - Japanese shares bounced back
modestly on Wednesday, partially clawing back hefty losses from
the previous two sessions, although gains were limited by
worries over the fast-spreading coronavirus from China.
The Nikkei share average .N225 rose 0.71% to 23,379.40,
while the broader Topix .TOPX added 0.45% to 1,699.95.
Traders called it a mere technical rebound, noting the
lingering concerns about the virus outbreak and its broader
economic and market impact.
The death toll from the China-linked virus rose sharply to
132 on Wednesday with nearly 1,500 new cases, heaping pressure
on Beijing to control the outbreak as U.S. officials said the
White House was weighing whether to suspend all flights to the
country. While mainland Chinese markets will remain shut this week,
Hong Kong's Hang Seng .HSI dropped 2.6% by 0600 GMT as markets
resumed trade after the Lunar New Year break. The size of fall
was not out of line with its peers in the region.
"Some investors swiftly bought back Tokyo-listed shares as
Hong Kong's drop was not as massive as they had feared," said
Takehiko Masuzawa, head of sales trading for Japanese clients at
Macquarie Capital Securities.
Shippers .ISHIP.T climbed 2.7% to become the best
performing sector among the Tokyo Stock Exchange's 33
subindexes.
Nippon Yusen KK 9101.T jumped 3.2% after the Nikkei
newspaper reported that Japan's largest shipping company was
likely to book 20 billion yen ($182 million) in recurring profit
for the October-December period, the highest quarterly figure in
three years.
The company is due to announce its earnings results for the
April-December period on Friday.
Unizo Holdings 3258.T gained 6.6% after U.S. private
equity firm Blackstone Group BX.N sweetened its proposed offer
for the company by 12% to 191.6 billion yen ($1.75 billion),
topping a rival bid from U.S. buyout fund Lone Star.
Teikoku Sen-i 3302.T advanced 3.4% after British investor
Asset Value Investors submitted proposals to boost its dividend
and conduct a share buyback. M3 2413.T rose 2.7% after the medical information services
provider posted generally positive earnings. Obic 4684.T dived 5.1% after the system integration
service operator's quarterly earnings fell short of market
expectations. A number of Japanese firms, including Fanuc 6954.T and
Advantest 6857.T , are due to announce their earnings results
after market hours on Wednesday.
Telecom network maker Anritsu Corp 6754.T declined 4.4%
after U.S. chipmaker Xilinx Inc XLNX.O declined 9% in after
hour trading on disappointing results. Murata Manufacturing 6981.T settled 0.6% lower after
Xilinx's earnings miss offset any boost from Apple Inc's
AAPL.O upbeat results. Some investors were on the sidelines before the U.S. Federal
Reserve's policy announcement later in the day.
The Fed is expected to reiterate its desire to keep rates
unchanged at least through this year, though some analysts
wonder if it could be shaken off autopilot if the virus outbreak
deepens.
($1 = 109.7000 yen)