By Rocky Swift
TOKYO, April 18 (Reuters) - Japan's Nikkei share average climbed for an eighth consecutive session on Tuesday,
led by gains by banks on positive U.S. data and exporters
boosted by the weaker yen.
The Nikkei climbed 0.56% to 28,675.32, as of the
morning break, nearing the highest level this year. The broader
Topix rose 0.75% to 2,042.26.
Lenders Resona Holdings Inc and Concordia Financial
Group Inc were among the sharpest gainers on the
Nikkei, jumping more than 2.5%. Mazda Motor Corp climbed 2.04% after the yen depreciated for a second day.
U.S. shares rose on Monday after several banks kicked off
first-quarter reports with strong results and a positive reading
from the New York Fed's barometer of manufacturing activity.
"Earnings expectations have been OK. The yen has settled
down, at a level weaker than last year," said Quiddity Advisors
analyst Travis Lundy, who publishes on Smartkarma.
Comments by billionaire investor Warren Buffett last week
that he was adding to investments in Japan, along with
regulatory pressure on companies with low price-to-book (PBR)
ratios are adding to buying cues, he added.
"There are expectations that lower PBR stocks being 'forced'
to become higher PBR stocks will mean cross-holding unwinds and
buybacks," he said.
The Nikkei is poised for its longest winning streak since
March 2022. The gauge is trading more than 3% over its 25-day
moving average, which may be a sign of volatility ahead, Nomura
Securities strategist Kazuo Kamitani said.
"It's too early to say the market is overheating, but it
could a warning sign for high values," he said.
There were 188 gainers on the Nikkei against 31 that
fell. Inpex Corp dropped 1.73%, leading declines among
energy shares after oil prices slid in U.S. trading.
Sega Sammy Holdings Inc slipped 3.13% after
announcing on Monday it planned to acquire Angry Birds game
franchise maker Rovio Entertainment Oyj for 706
million euros ($776 million).
(Reporting by Rocky Swift; Editing by Sonia Cheema)
