TOKYO, March 10 (Reuters) - Toyko stocks rallied to finish up
more than two percent for a straight second day on Wednesday
amid continued optimism Sony Corp's restructuring would prompt
more of corporate Japan to revamp operations.
Relative stability of the yen against the dollar also helped spur global blue chips, including Matsushita
Electric Industrial Co and TDK Corp .
''It's the 'Sony Effect','' said Shigemi Nonaka, a fund manager at Sanyo Investment Trust Management
Co. ''People are hoping to hear more of these stories.''
The benchmark Nikkei average finished up 383.30 points or 2.54 percent at 15,480.00--its highest level
since August 10, 1998. March futures were up 350 at 15,430.
On Tuesday, Sony said it would cut 17,000 jobs and shutter more than 20 facilities over the next four
years as part of efforts to maintain its flagging profitability. While other electronics makers, including
NEC , Toshiba and Hitachi , had previously announced jobs cuts, the rest of Japan Inc has been slow
to restructure even as the nation writhes through its worst recession since the end of World War Two.
Sony rose 910 yen or 8.32 percent to 11,850. The electric equipment subindex (^NELI - news) jumped
3.58 percent.
Securities houses also joined the rally amid expectations a rising stock market would entice more
people to trade and enhance profits. The securities subindex (^SEC - news) jumped 8.03 percent as
Nikko Securities and Daiwa Securities , both members of the Big Three houses, posted double-digit
percent gains. Turnover soared amid the equity enthusiasm with volume on the first section rising to
982.76 million shares from 594.84 million shares traded on Tuesday. Second section volume was 16.72
million shares.
Breadth underscored market optimism with three shares rising for each one that fell.
Traders cautioned, however, that the market, which has risen 11.8 percent since the beginning of the
year, was unlikely to maintain the head of steam it had developed.
They said much of the buying was from foreign accounts that were late to move on the Sony news.
That was giving Japanese investors an opportunity to sell into the rally ahead of business year-end
book-closings on March 31.
''A lot of domestics are selling into the rally,'' said a trader at a Big Three brokerage. ''They're letting
the foreigners push it up for them.''
Japan Tobacco slid 50,000 yen or 4.76 percent to 1,000,000 on news it would buy RJR Nabisco
Holdings Corp's (NYSE:RN - news) international tobacco business for about $8 billion.
Fuji Bank soared 76 yen or 14.7 percent to 593 after plans announced on Monday as a precondition for
receiving public funds for recapitalisation helped subdue worries about its future profitability.
Broader indexes were also higher. The TOPIX index of all first section shares was up 24.96 points or
2.15 percent at 1,187.47. The capitalisation-weighted Nikkei 300 was up 5.34 points or 2.29 percent at
238.16. The second section index was up 24.51 points or 1.78 percent at 1,404.47.
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