TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average ended
at a near six-month high on Wednesday, as investors scooped up
cheap stocks on hopes of an economic rebound, while SoftBank
Group jumped after its share-swap deal with Deutsche
The Nikkei share average rose 0.89% to close at
30,181.21, its highest since March 18. The broader Topix
advanced 0.79% to 2,079.61.
"Foreign investors, who had paid little attention to
Japanese stocks, have realised how cheap they are," said Shoichi
Arisawa, general manager of the investment research department
at IwaiCosmo Securities.
Declines in Japanese markets until recently have dragged
their valuations, with Arisawa saying the Nikkei's P/E was
"cheap", at around 13 times this financial year's estimated
Its recent gains, however, come against the backdrop of
Prime Minister Yoshihide Suga's abrupt announcement that he
would not seek re-election for his party's leadership last week.
His Liberal Democratic Party (LDP) will hold a leadership
election on Sept. 29 and the winner of the vote is all but
assured to be Japan's next prime minister.
Investors are betting that Japan's coronavirus-hit economy
would recover under stimulus packages, while strong corporate
outlook would underpin the main indexes, according to market
SoftBank Group closed up 4.64% after the global start-up
investor made a $7 billion share-swap deal with Deutsche Telekom
It failed to keep an earlier gain of more than 10% but was
the biggest contributor to the Nikkei's gain along with
chip-related stocks which tracked the Nasdaq higher overnight.
Advantest and Tokyo Electron rose 3.41%
and 2.35%, respectively.
SoftBank Group was the top performer on the Nikkei,
followed by Nikon, which rose 4.18% and Rakuten Group
, up 3.89%.
JFE Holdings, which fell 1.94%, was the worst
performer on the index, followed by Chugai Pharmaceutical
, losing 1.86% and Nippon Express, which fell
(Reporting by Junko Fujita; editing by Uttaresh.V and Rashmi