Japan stocks rise on bargain hunting, Asia gains

Japanese shares bounced back Tuesday for the first rise in five trading sessions, buoyed by gains on other Asian markets, and as investors picked up cheap stocks after recent heavy losses. The benchmark Nikkei 225 Stock Average gained 86.37 points, or 1.04 per cent, to end at 8,382.0 after giving up 1.71 per cent Monday. The broader-based Topix index was up 12.73 points, or 1.83 per cent, at 708.24 after ending at its lowest level in more than 28 years Monday. Stocks advanced further in the afternoon as other Asian markets also rose. By midafternoon, South Korea's Kospi Index had jumped 1.15 per cent and Hong Kong's Hang Seng Index had climbed 1.08 per cent. Exporters rose strongly as the yen fell against major currencies. A weaker yen makes Japanese goods less expensive overseas and improves repatriated earnings. Shares in Canon Inc rebounded 3.39 per cent on its stock buy-back plan. The company said Monday it would spend up to 50 billion yen (638 million dollars) buying its own stocks after plunging 5.15 per cent. Sony Corp surged 3.31 per cent, construction machinery maker Komatsu Ltd jumped 2.80 per cent, Honda Motor Co gained 2.07 per cent, and Toyota Motor Corp was up 0.76 per cent. On currency markets at 3 pm (0600 GMT), the dollar traded at 78.44-45 yen, up from Monday's 5 pm quote of 77.99-78.00 yen. The euro was quoted at 1.2521-2522 dollars, up from 1.2416-2417 dollars late Monday, and at 98.21-24 yen, up from 96.83-87 yen.