Japanese stocks ended Wednesday at a 10-month high, rebounding in late afternoon to end higher for the third straight session as investors shifted funds to laggard stocks such as retailers while locking in profits on high techs.
NEC Corp and other tech bellwethers also clawed back some ground in late afternoon as investors covered short positions after the market fell less than many expected in early trade.
The Nikkei average ended up 0.93 percent at 9,990.95, its highest closing level since August 26, adding to a 1.06 percent gain on Tuesday, when it briefly topped the key 10,000 level. The TOPIX index of all first-section issues ended up 0.32 percent at 979.38.
Many market players were seen as still largely unfazed by the speed of the benchmark Nikkei's rise of over 30 percent from its 20-year lows hit in late April, a rise that has far outstripped the Dow Jones industrial average over the same period.
"You could make the argument some of the recent rises have been overdone, but we have to also look at the fact that this market has power right now, especially with the volume continuing to stay at such favorable levels," said Yutaka Miura, deputy manager at Shinko Securities.
Trading volume on the first section totaled 1.44 billion shares, making Wednesday the 30th straight session with over a billion shares traded, the longest such run since a five-day trading week was launched in 1989.
Traders said the volume encouraging individual investors to continue to push up Internet investor Softbank Corp and other volatile stocks despite no real new trading incentives, in hopes of profiting from the rally.
Softbank, the most heavily traded issue by value, reversed earlier losses to end up for an 11th straight session, gaining 1.68 percent to 3,630 yen.
Other stocks that had powered the market's recent rally, such as chips-to-computers conglomerate NEC, also gained back some ground in late trade, but still ended down as investors were seen locking in profits amid fears their rise had been too quick.
"Investors are starting to rotate funds out of overheated sectors like tech and into consumer-related stocks like Ito-Yokado, which are seen as laggards," said Yusuke Sakai, manager of equities at Mizuho Securities.
NEC ended down 1.46 percent at 809 yen, after having rallied more than 140 percent from its year low of 333 yen hit in April on hopes for a recovery in the technology sector.
Tokyo Electron Ltd, Japan's biggest producer of chipmaking equipment, was down 2.46 percent at 7,140 yen. The company retreated after having gained almost 30 percent this month, partly on a series of upgrades of the outlook for the chip sector by brokerages including Deutsche Securities.
But retailers and "defensive" stocks like drugmakers reaped the benefits of tech stocks taking a breather, with foreign investors in particular seen snapping up stocks that had lagged the overall market's recent rally.
Aeon Co Ltd, Asia's second-largest retailing group, ended up 7.95 percent at 3,190 yen, while Japan's third-ranked convenience store operator FamilyMart Co Ltd jumped 8.87 percent to 2,640 yen.
Both were also boosted by slightly improving hopes for the domestic economy, with last week's "tankan" corporate sentiment survey and Tuesday's machinery orders data both beating expectations.
"We've had some brighter news on the macroeconomy recently, and the rise in stocks itself mauji Investment Management.
NEC Corp and other tech bellwethers also clawed back some ground in late afternoon as investors covered short positions after the market fell less than many expected in early trade.
The Nikkei average ended up 0.93 percent at 9,990.95, its highest closing level since August 26, adding to a 1.06 percent gain on Tuesday, when it briefly topped the key 10,000 level. The TOPIX index of all first-section issues ended up 0.32 percent at 979.38.
Many market players were seen as still largely unfazed by the speed of the benchmark Nikkei's rise of over 30 percent from its 20-year lows hit in late April, a rise that has far outstripped the Dow Jones industrial average over the same period.
"You could make the argument some of the recent rises have been overdone, but we have to also look at the fact that this market has power right now, especially with the volume continuing to stay at such favorable levels," said Yutaka Miura, deputy manager at Shinko Securities.
Trading volume on the first section totaled 1.44 billion shares, making Wednesday the 30th straight session with over a billion shares traded, the longest such run since a five-day trading week was launched in 1989.
Traders said the volume encouraging individual investors to continue to push up Internet investor Softbank Corp and other volatile stocks despite no real new trading incentives, in hopes of profiting from the rally.
Softbank, the most heavily traded issue by value, reversed earlier losses to end up for an 11th straight session, gaining 1.68 percent to 3,630 yen.
Other stocks that had powered the market's recent rally, such as chips-to-computers conglomerate NEC, also gained back some ground in late trade, but still ended down as investors were seen locking in profits amid fears their rise had been too quick.
"Investors are starting to rotate funds out of overheated sectors like tech and into consumer-related stocks like Ito-Yokado, which are seen as laggards," said Yusuke Sakai, manager of equities at Mizuho Securities.
NEC ended down 1.46 percent at 809 yen, after having rallied more than 140 percent from its year low of 333 yen hit in April on hopes for a recovery in the technology sector.
Tokyo Electron Ltd, Japan's biggest producer of chipmaking equipment, was down 2.46 percent at 7,140 yen. The company retreated after having gained almost 30 percent this month, partly on a series of upgrades of the outlook for the chip sector by brokerages including Deutsche Securities.
But retailers and "defensive" stocks like drugmakers reaped the benefits of tech stocks taking a breather, with foreign investors in particular seen snapping up stocks that had lagged the overall market's recent rally.
Aeon Co Ltd, Asia's second-largest retailing group, ended up 7.95 percent at 3,190 yen, while Japan's third-ranked convenience store operator FamilyMart Co Ltd jumped 8.87 percent to 2,640 yen.
Both were also boosted by slightly improving hopes for the domestic economy, with last week's "tankan" corporate sentiment survey and Tuesday's machinery orders data both beating expectations.
"We've had some brighter news on the macroeconomy recently, and the rise in stocks itself mauji Investment Management.
3287.99
1275.09