(Adds stocks, details)
By Elaine Lies
TOKYO, Feb 13 (Reuters) - Japanese share prices climbed more
than 1 percent on Wednesday as Millea Holdings Inc <8766.T> and
other insurers rose after an offer of help to U.S. bond insurers
soothed market worries about credit problems.
Canon Inc <7751.T> and other blue-chip exporters rose,
boosting the overall market, but gains were limited by
uncertainty ahead of key Japanese and U.S. economic indicators
including Japanese GDP on Thursday.
Billionaire investor Warren Buffett offered on Tuesday to
reinsure $800 billion in municipal debts guaranteed by the top
three U.S. bond insurers, soothing worries about fallout from the
credit crisis and sending the Dow Jones industrials <> and
S&P 500 <.SPX> higher [].
But CNBC reported that one of the three, Ambac Financial
Group Inc <ABK.N>, had already rejected the offer, reinforcing
wariness among already sceptical Japanese market players.
"One has rejected the offer and the other two haven't
responded yet, so there's still definitely doubts about how
effective a measure this really is," said Noritsugu Hirakawa of
the investment strategy section at Okasan Securities.
"Still, the fact that this offer has been made is a ray of
light for the market."
Others said Buffett's offer did not cover the problem debt at
the heart of the credit crisis and that much more stringent
measures, such as fund injections, are needed to resolve the
issue.
"Basically, the market's worries have been just temporarily
lifted," said Takashi Ushio, head of the investment strategy
division at Marusan Securities.
The benchmark Nikkei average <> rose 1.4 percent by
midsession by 13,202.70, a gain of 180.74 points, while the
broader TOPIX index <> rose 1.2 percent to 1,301.24.
Investors began sidelining themselves ahead of a raft of
economic indicators and events later this week and trade was
light as a result, with 935 million shares changing hands
compared with last week's morning average of 1.05 billion.
Advancing shares outnumbered decliners by more than two to
one.
FINANCIALS FORGE UP
Though Millea Holdings and other financials had trimmed their
gains by midsession, all were still up after several days of
slides -- especially on Tuesday, when worries about impending
ratings cuts for the bond insurers sent them tumbling.
Millea Holdings, Japan's largest non-life insurer, rose 1.8
percent to 3,880 yen, while Mitsubishi UFJ Financial Group
<8306.T> was up 1.6 percent at 958 yen and Sumitomo Mitsui
Financial Group <8316.T> added 0.8 percent to 785,000 yen.
By midsession, blue-chip exporters were some of the steadiest
gainers, with Canon rising 3.9 percent to 4,560 yen and Sony Corp
<6758.T> up 3.5 percent at 4,790 yen -- two of the top five
contributors to the Nikkei's rise.
The Nikkei business daily reported that digital camera and
medical equipment maker Fujifilm Holdings Corp <4901.T> will bid
more than 100 billion yen ($932 million) for control of drug
maker Toyama Chemical Co Ltd. <4518.T>.
Fujifilm and Taisho Pharmaceutical Co Ltd <4535.T>, Toyama
Chemical's top shareholder, said in a statement that nothing had
been decided, while Toyama Chemical said it was considering
various possibilities but that no decisions have been made.
Toyama Chemical was bid up by its daily limit at 731 yen by
midsession, while Fujifilm slipped 1.5 percent.
(Reporting by Elaine Lies, Editing by Michael Watson)
