(Adds stocks, details)
By Elaine Lies
TOKYO, Jan 25 (Reuters) - Japanese shares climbed about 3
percent on Friday as bank stocks rose after news that troubled
U.S. bond insurer Ambac may be in talks with a buyer.
A weaker yen against the dollar boosted Nissan Motor Corp
<7210.T> and other blue-chip exporters, while a Wall Street
rebound after a U.S. tax rebate plan was announced gave investors
enough confidence to buy across the board.
Billionaire Wilbur Ross is in serious talks to take over
Ambac Financial Group Inc <ABK.N>, according to a report in the
U.K.'s Evening Standard on Thursday []
"The market is up on Wall Street's rebound, yes, but it's
really about Ambac, not the tax plan so much," said Tomomi
Yamashita, a fund manager at Shinkin Asset Management.
"This has reassured banks, which are stronger than expected,
and that's lifted the market more than was expected."
He added that he felt the sharp selloff earlier this week was
largely due to concerns about Ambac and its peers so a rebound on
the news was only natural.
The Nikkei share average <> was up 2.8 percent at
midsession to 13,459.83, a gain of 367.05 points. The broader
TOPIX index <> was up 3.4 percent at 1,327.57, a rise of
43.12 points.
The yen was pressured against the dollar by a broad recovery
in global stock markets. The dollar was hovering around 107.27
yen by midday in Asia <JPY=>.
Wall Street rose as concerns of an economic recession eased
after Congress and the White House agreed on the outlines of an
economic stimulus package that would give 117 million U.S.
families a tax rebate. []
But Japanese market participants remained wary.
"If you look at the U.S. share gains, it was mainly on things
like Internet-linked shares and communications," said Nagayuki
Yamagishi, a strategist at Mitsubishi UFJ Securities.
"Therefore, you can't think that the biggest problems have
been completely dealt with yet."
But Shinkin's Yamashita warned that markets could find
themselves paring gains later in the day should Asian shares
slide, especially those in Shanghai and India.
At 0232 GMT, the MSCI index of Asian stocks excluding Japan
<.MIAPJ0000PUS> was up 3.5 percent.
BANKS BUOYED, EXPORTERS ENERGISED
Banks rose sharply, with industry No. 2 Mizuho Financial
Group <8411.T> rising 7.4 percent to 493,000 yen and industry
leader Mitsubishi UFJ Financial Group <8306.T> up 5.5 percent.
Sumitomo Mitsui Financial Group <8316.T> was up 5 percent at
814,000 yen.
Nissan rose 6.8 percent to 1,004 yen, while Honda Motor Corp
<7267.T> was up 5.9 percent at 3,250 yen, becoming the
second-biggest booster of the Nikkei by volume weight.
Other good performers among blue-chip exporters were Hitachi
<6501.T>, up 5.3 percent at 753 yen, and Canon Inc <7751.T>, up
4.4 percent at 4,750 yen.
Game maker Nintendo Co Ltd <7974.OS> briefly jumped 5 percent
before paring gains to 1.9 percent after robust holiday sales of
its Wii and DS game machines helped more than double its
operating profit, leading it to raise its outlook above market
expectations. []
JP Morgan said Nintendo's sales and profits continued to
outpace its expectations, and it raised its target price to
80,000 yen from 75,000 yen while maintaining its "overweight"
rating.
Shinkin Asset Management's Yamashita said Nintendo was
commendable as a stock due to the company's strong assets, but
thought it might be headed for a downward trend due to investor
perceptions that the company may be at its peak now.
Trade was moderate, with 1.17 billion shares changing hands
on the first section of the Tokyo exchange, compared with last
week's morning average of 1.14 billion.
Advancing shares outnumbered decliners by more than 10 to one.
(Reporting by Elaine Lies; Editing by Hugh Lawson)
