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

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.