Japanese stocks end at 5-1/2-week high on global stimulus hopes

By Tomo Uetake
TOKYO, Sept 9 (Reuters) - Japanese shares hit a 5-1/2-week
closing 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 ended 0.56% firmer at
21,318.42, while the broader Topix .TOPX rose 0.91% to
1,551.11 - their highest closing levels since Aug. 2.
"Three big worries for financial markets - namely, the
U.S.-China trade war, Brexit jitters and Hong Kong protests -
have retreated and contributed to the risk-on sentiment," said
Masayuki Kubota, chief strategist, Rakuten Securities.
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 U.S. 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. All of Tokyo's 33 sub-sectors ended in positive territory,
with oil and coal products .IPETE.T and construction stocks
.ICNST.T among the top performing sectors, up 1.6% and 1.5%,
respectively.
Elsewhere, regional bank shares rallied broadly, 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 ended 9.8% firmer, Tochigi Bank
8550.T soared 9.2% and Bank of Kochi Ltd 8416.T advanced
4.6%, while Shimane Bank 7150.T , which jumped by daily limit
of 16.4% in the previous session, added 1.6%. SBI Holdings
8473.T closed 1.2% higher.
Bucking the broad market trend, Nissan Motor 7201.T dipped
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.
A source told Reuters the carmaker's nominating committee
will discuss Saikawa's resignation and possible successors on
Monday.