Nikkei rises as European markets strong; gaming sector shines

  • Reuters
  • Stock Market News
Nikkei rises as European markets strong; gaming sector shines
Credit: © Reuters.

* Turnover boosted in final minutes from trade related to MSCI reshuffle - traders

* Game-related shares surge

* Tokyo Electron gains on share-buyback plan

By Ayai Tomisawa

TOKYO, May 28 (Reuters) - Japan's Nikkei rose on Tuesday as gains in European markets improved sentiment, while activity in the gaming sector shot up on hopes for a new gaming title.

Square (NYSE: SQ ) Enix Holdings 9684.T jumped 7% on heavy volume after it said it will hold a presentation on YouTube and Niconico to announce a new Dragon Quest game for mobile platforms on June 3. Gaming content provider Tose 4728.T soared 17%, while social game business operator Akatsuki 3932.T surged 5%.

The Nikkei share average .N225 ended 0.4% to 21,260.14.

Turnover on the mainboard was 2.9 trillion yen, but traders said that about a half of that came about in the last five minutes before the market close from trade related to reshuffling of the MSCI Japan Index. MSCI had said that it would add Advantest Corp 6857.T , GMO Payment Gateway, Itochu Techno-Slutions 4739.T , Mercari Inc 4385.T and PeptiDream Inc 4587.T as of Wednesday.

"A flow from funds linked to MSCI was big, but overall trading was generally thin as investors were on the sidelines seeking more cues," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

After U.S. President Donald Trump met Japanese Prime Minister Shinzo Abe on Monday, he told reporters he expected the two countries to be "announcing some things, probably in August, that will be very good for both countries" on trade.

On Tuesday, Japan's Economy Minister Toshimitsu Motegi said Trump's comment probably reflected his hope for quick progress in negotiations. Ueno, a senior strategist at Sumitomo Mitsui Trust Asset Management, said that as details of Japan-U.S. trade talks won't be out soon, the market's focus "is still on U.S.-China trade frictions. Investors are still nervous about the global economy."

"Economic indicators will likely move the market for the time being," Ueno said.

Bank of Japan Governor Haruhiko Kuroda said on Monday the global economic outlook is highly uncertain, and there are downside risks due to trade friction. machinery and electric machinery shares gained ground on Tuesday. Casio Computer 6952.T rose 2.4%, Olympus Corp 7733.T advanced 1.4%, Hitachi Ltd 6501.T jumped 2.7% and Panasonic Corp 6752.T climbed 1.5%.

Tokyo Electron 8035.T jumped more than 6% before trimming gains and was up 2.7% for the day after saying it would buy back up to 150 billion yen of its own shares. broader Topix .TOPX rose 0.3% to 1,550.99. (Editing by Shri Navaratnam)

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