Japan's Nikkei ends up, off 9-month peak, buoyed by financials

By Reuters / November 11, 2016 / in.investing.com / Article Link

* Nikkei soars 2.8 pct on the week

* Non-ferrous metal stocks higher on rising copper price

* Nikkei trims gains on profit-taking

By Ayai Tomisawa

TOKYO, Nov 11 (Reuters) - Japan's Nikkei stood firmer on Friday, not far a nine-month high, as investors took profit after markets rose on hopes that President-elect Donald Trump's policies could boost growth.

The Nikkei .N225 gained 0.2 percent to 17,374.79, after rising as much as 17,621.73 earlier, the highest level since Feb. 2.

For the week, the benchmark index soared 2.8 percent, the biggest weekly gain since early September.

Expectations of higher inflation and economic growth under Trump, whose key policy priorities include generous tax cuts and higher infrastructure and defence spending, spurred buying in U.S. shares, which energised the bulls in the Japanese market as well.

"Investors took heart from hopes that the market may be entering a new era," said Kyoya Okazawa, head of global market & commodity derivatives at BNP Paribas (PA:BNPP). "But the market will also be sensitive to Trump's comments and attitudes in the future. If he repeats what he said in his campaign about monetary policy or Japan-U.S. alliance, the market could get rocked."

Financials soared after U.S. Treasury yields climbed on the view that Trump's economic policies would push up inflation. Japan's financial institutions are seeking higher-yielding investment opportunities for their foreign debt investments.

Dai-ichi Life Holdings 8750.T jumped 8.8 percent, MS&AD Insurance 8725.T soared 2.3 percent and Mitsubishi UFJ Financial Group 8306.T surged 9.0 percent.

Non-ferrous metal stocks also gained ground, with Mitsubishi Materials Corp 5711.T leaping 6.9 percent and Dowa Holdings 5714.T rising 4.0 percent after copper surged more than 5 percent to a 16-month high on speculation that Trump could boost U.S. construction spending.

The broader Topix .TOPX added 0.1 percent to 1,378.28 and the JPX-Nikkei Index 400 .JPXNK400 advanced 0.3 percent to 12,383.44.

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