Nikkei vaults past 200-day average, value shares snatched up

* Nikkei rises to highest level since late February
* Value shares such as banks, steelmakers and autos soar
* Turnover hits highest level in 2 months
* Nissan up on revival plan, Dentsu gain after earnings

By Hideyuki Sano
TOKYO, May 28 (Reuters) - Japan's Nikkei share average
jumped on Thursday, vaulting above a key technical resistance of
its 200-day moving average, on hopes of a quick economic
normalisation, with investors snatching up deeply discounted
stocks such as financials.
The positive mood overwhelmed concerns about deteriorating
U.S-China relations as Washington signals it may no longer
regard Hong Kong warranted special treatment as Beijing prepares
new security law for the territory. The Nikkei average .N225 gained 2.32% to 21,916.31, rising
above a major chart point of the 200-day moving average at
21,657. The broader Topix .TOPX gained 1.80% to 1,577.34. Both
indexes hit their highest levels since late February.
Gains were led by short-covering in value-oriented shares,
such as financials, steelmakers and autos -- the sectors that
had slumped since the global outbreak of the novel coronavirus.
Banks .IBNKS.T jumped 3.6%, while securities brokerages
.ISECU.T gained 2.2% and insurers .IINSU.T rose 2.3%.
Steelmakers .ISTEL.T added 4.1%.
Including those, value shares .TOPXV rose 2%, while
growth-oriented shares .TOPXG played a quick catch-up in late
trade to gain 1.6%.
"Rallies in U.S. and European markets and Japan's stimulus
are helping the market. As investors see a bottom-out in the
economy, it is natural for them to buy cyclical and value
stocks," said Seiki Orimi, senior strategist at Mitsubishi UFJ
Morgan Stanley Securities.
Japanese Prime Minister Shinzo Abe's cabinet approved on
Wednesday a new $1.1 trillion stimulus package that includes
significant direct spending. Nissan Motor 7201.T rallied 8.2% and Mitsubishi Motor
7211.T rose 6.4% after the two automakers, along with Renault
RENA.PA , announced a revival plan, pledging to cut vehicle
ranges and pool manufacturing by region. Dentsu 4324.T soared 16.4% after the PR firm reported
profits for the three months to March, compared to a net loss a
year earlier. Recruit Holdings 6098.T gained 7% despite its
January-March earnings falling short of expectations.
Trade was active with the turnover jumping to 3.38 trillion
yen ($31.35 billion), the highest in two months.
($1 = 107.8300 yen)