TOKYO, Sept 8 (Reuters) - Japanese shares rose on Wednesday
as investors scooped up cheap stocks on hopes of an economic
rebound, while SoftBank Group surged after its
share-swap deal with Deutsche Telekom.
By 0208 GMT, the Nikkei share average was up 0.83%
at 30,164.40. The broader Topix rose 0.67% to 2,077.11.
"Foreign investors, who had paid little attention to
Japanese stocks, have realised how cheap Japanese shares are,"
said Shoichi Arisawa, general manager of the investment research
department at IwaiCosmo Securities.
Declines in Japanese markets until recently have dragged
their valuations, with Arisawa saying the Nikkei's P/E was
"cheap" at 13 times.
Its recent gains, however, come against the backdrop of
Prime Minister Yoshihide Suga's abrupt announcement that he
would not seek re-election for his party's leadership last week.
His Liberal Democratic Party (LDP) will hold a leadership
election on Sept. 29 and the winner of the vote is all but
assured to be Japan's next prime minister.
Investors are betting that Japan's virus-hit economy would
recover under stimulus packages, while strong corporate outlook
would underpin the main indexes, according to market
SoftBank Group led the Nikkei's gain, surging 7.88% after it
made a $7 billion share-swap deal with Deutsche Telekom
Chip-related stocks tracked the Nasdaq higher overnight,
with Advantest and Tokyo Electron gaining
2.44% and 1.34%, respectively.
Toyota Motor edged up 0.05% after the automaker
announced plans to spend more than $13.5 billion by 2030 to
develop batteries and its battery supply system.
SoftBank Group was the top performer on the Nikkei, followed
by Rakuten Group, which gained 4.08% and GS Yuasa Corp
, rising 3.53%.
Nippon Express was the worst performer on the
index, with a 1.72% drop, followed by Nisshin Seifun Group
losing 1.69% and JFE Holdings Inc, down 1.67%.
(Reporting by Junko Fujita; editing by Uttaresh.V)