Nikkei rises as SoftBank Group soars on Sprint-T-Mobile merger approval

TOKYO, Feb 12 (Reuters) - Japan's benchmark stock index
Nikkei advanced on Wednesday, as heavyweight SoftBank Group Corp
soared after a U.S. federal judge approved a merger between its
U.S. wireless unit Sprint Corp and T-Mobile US Inc.
The Nikkei share average .N225 closed 0.74% higher at
23,861.21, while the broader Topix .TOPX slipped 0.04% to
1,718.92.
SoftBank Group 9984.T jumped 11.9% to become the country's
second-biggest company by market value after a U.S. federal
judge rejected an antitrust challenge to the proposed takeover
of SoftBank's subsidiary Sprint S.N by T-Mobile TMUS.O .
"This is obviously great news for Sprint... It is better
news for SoftBank," analyst Kirk Boodry at Redex Holdings wrote
in a note on the Smartkarma platform.
The deal would allow SoftBank Group, which reports its
earnings after market close on Wednesday, offload a troubled
asset at a time when its other major bets face investor
scepticism. The tech conglomerate's stock has risen 20% year-to-date,
especially after U.S. activist Elliott Management amassed a
stake of almost $3 billion and pushes for change at the firm,
including $20 billion in stock buybacks. Under pressure to boost shareholder value, SoftBank is
likely to launch a share buyback this month, Jefferies analyst
Atul Goyal wrote in a note.
SoftBank was the most-traded stock on the main board and the
jump in the stock lifted the information and communication
sector sub-index .ICOMS.T 2.3%, making it the best-performing
sector on the Tokyo bourse.
However, more than two-thirds of the 33 sector sub-indexes
were in negative territory, led by rubber products .IRUBR.T ,
electric and gas .IEPNG.T and construction .ICNST.T .
Overnight, the S&P 500 .SPX and the Nasdaq .IXIC inched
to their second consecutive record closing highs, while the Dow
.DJI closed flat, as Chinese officials said the deadly
coronavirus epidemic could be contained by April. .N
In contrast to the upbeat mood on Wall Street, many
Tokyo-listed stocks were weighed down by worries of supply chain
disruptions from the coronavirus outbreak in China that has
killed more than 1,100 people.
Nissan Motor Co 7201.T lost 1.7% after the automaker
temporarily halted production at its plant in Kyushu,
southwestern Japan, due to supply shortage of parts from China.
Taiko Pharmaceutical Co Ltd 4574.T surged 18.2% to hit its
daily limit after the drugmaker, which makes infection-control
products, raised its operating profit forecast for the year
ending March and announced a stock split plan.
Elsewhere, chip-related companies attracted buying as the
U.S. Philadelphia Semiconductor Index .SOX climbed 2%
overnight, with Tokyo Electron Ltd 8035.T rising 3.5% and
Advantest Corp 6857.T gaining 4.3%.