Nikkei Edges up 0.2pct,Softbank,Bank Shares Bought

Japans Nikkei average edged up 0.2 percent on Wednesday as investors picked up recently battered shares.

Japan's Nikkei average edged up 0.2 percent on Wednesday as investors picked up recently battered shares such as mobile phone carrier Softbank Corp and banks such as Mizuho Financial Group Inc, offsetting selling of drugmakers.

"I would call today's move rebalancing, in which investors are selling shares with a relatively good performance and buying back recently oversold ones," said Kenichi Hirano, operating officer at Tachibana Securities.

Mizuho Financial Group rebounded and was up 1.1 percent at 628,000 yen after hitting an intraday low of more than 2 years on Tuesday, while rival Sumitomo Mitsui Financial Group Inc rose 2.6 percent to 833,000 yen.

Property firm Mitsubishi Estate Co Ltd was up 0.3 percent at 3,100 yen, while Sumitomo Realty & Development Co Ltd gained 2.4 percent to 3,790 yen and Mitsui Fudosan Co Ltd added 0.9 percent to 2,980 yen.

"The market's move today was relatively firm," said Tsuyoshi Nomaguchi, strategist at Daiwa Securities. "There was buying on banks and property in what I call 'there come domestic-related shares'."

He said banks and property shares were also buoyed by relief among investors due to a sense that the worst of the subprime problems might be over.

Softbank, which was one of the stocks that had been heavily sold recently, rose 3.7 percent to 2,055 yen.

Drugmaker Eisai Co Ltd fell 1.5 percent to 5,340 yen and Takeda Pharmaceutical Co Ltd shed 0.9 percent to 7,940 yen after both companies gained in the previous four straight sessions.

The benchmark Nikkei ended up 34.01 points at 16,435.74, while the broader TOPIX index added 0.59 percent to 1,576.02.

Trade slowed with 1.7 billion shares changing hands, compared with a daily average of 2.3 billion in August. Advancing stocks beat declining ones by a ratio of more than three to one.

NUCLEAR REVIVAL

Amid lack of news to move specific stocks, Toshiba Corp, Mitsubishi Heavy Industries Ltd and other nuclear power-related shares were bought on fresh expectations for a revival of nuclear power plant market in U.S. following a news of the first nuclear plant construction application in the country in 29 years.

Toshiba was up 4.2 percent at 1,027 yen and Mitsubishi Heavy rose 3.8 percent to 720 yen. Japan Steel Works, a major supplier of nuclear power generation components, also climbed 3.7 percent to 1,923 yen.

Other nuclear power-related shares also rose. Kimura Chemical Plants Co Ltd, maker of nuclear-related equipment, jumped 15.5 percent to 1,493 yen, machinery maker Teikoku Electric Mfg Co Ltd rose 8.9 percent to 3,190 yen.