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Japanese stocks rise to 5-1/2-week high on global stimulus hopes; Nissan struggles

Published 09/09/2019, 04:12
Updated 09/09/2019, 04:20
© Reuters.  Japanese stocks rise to 5-1/2-week high on global stimulus hopes; Nissan struggles
JP225
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TOPX
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7201
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8473
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7150
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8338
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8562
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IINSU.T
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IRETL.T
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TOKYO, Sept 9 (Reuters) - Japanese shares advanced to a

5-1/2-week high on Monday, supported by hopes that stimulus from

the world's largest economies would help stave off a global

recession.

The benchmark Nikkei average .N225 rose 0.5% to 21,305.89

by the midday break, while the broader Topix .TOPX gained 0.6%

to 1,546.62 - both were at their highest levels since Aug. 1.

Global equity markets received a lift after China's central

bank said on Friday it was cutting the amount of cash that banks

must hold as reserves, releasing liquidity to shore up a slowing

economy dragged down by the Sino-U.S. trade war. Risk sentiment also improved as Federal Reserve Chairman

Jerome Powell said on Friday that the central bank will continue

to act "as appropriate" to sustain the economic expansion in the

world's biggest economy. However, broader stock market gains were tempered in the

wake of lacklustre economic data - U.S. job growth slowed more

than expected in August, while earlier on Monday data showed

Japan's economy grew at a slower pace than initially estimated

in the second quarter. Insurance .IINSU.T and retailer .IRETL.T were among the

top performing sectors of the Tokyo's 33 subindexes, with each

rising 1.3%.

Elsewhere, regional bank shares rallied, buoyed by growing

speculation of further consolidation in the industry after SBI

Holdings and Shimane Bank announced a capital tie-up plan on

Friday.

Tsukuba Bank 8338.T jumped 4.6% and Fukushima Bank

8562.T rose 2.2%, while Shimane Bank 7150.T , which soared by

daily limit of 16.4% in the previous session, shed 3.0%. SBI

Holdings 8473.T gained 1.0%.

Bucking the broad market trend, Nissan Motor 7201.T fell

0.2% after the Nikkei newspaper reported chief executive Hiroto

Saikawa as saying he wanted to "pass the baton" to the next

generation as soon as possible. Sources told Reuters

the carmaker's nominating committee will discuss Saikawa's

resignation and possible successors on Monday.

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