Nikkei comes off 6-mth lows, helped by China data

* Nikkei hovers, but moves away from 6-mth lows

* RSI stands around 34

* Hopes for China growth, global economy help -analysts

By Aiko Hayashi

TOKYO, June 10 (BestGrowthStock) – Japan’s Nikkei average rose 0.3
percent on Thursday, moving away from six-month lows hit the
previous day, after better-than-expected Chinese exports boosted
hopes for the global economic recovery.

Trading house giant Mitsui & Co (8031.T: ) tumbled more than 7
percent, becoming the biggest drag on the Nikkei as the fallout
from the Gulf of Mexico oil spill spread and after shares of BP
(BP.L: ) plunged. Mitsui owns 10 percent of the leaking well.

Sources said on Wednesday that Chinese exports in May grew
about 50 percent from a year earlier, a day before the data’s
release, sparking a broad rally in Shanghai and Europe.

The official announcement confirmed China’s exports rose
48.5 percent [ID:nBJB003863]

“The global economy doesn’t appear to be in such a bad shape,
except for problems with Europe’s finances,” said Kenichi Hirano,
operating officer at Tachibana Securities.

“Foreign investors that have been selling Japanese stocks
want to sell because they’re worried about liquidity, not because
they have reviewed their stance on Japan. They’ll need to see
European problems calm down.”

The benchmark Nikkei (.N225: ) gained 30.50 points to 9,469.63,
well below its 25-day moving average of around 9,900.00. It ended
down 1 percent on Wednesday, putting in its lowest close since
late November.

The Nikkei’s relative strength index remained around 34, with
30 and below considered oversold.

The broader Topix (.TOPX: ) was nearly unchanged at 850.93.

Defensive stocks gained as many blue-chip exporters remained
soft amid persistent worries about the yen strengthening on
worries about Europe’s debt crisis.

Detergent and cosmetics maker Kao Corp (4452.T: ) rose 1.7
percent to 2,016 yen while Japan Tobacco Inc (2914.T: ) advanced
1.9 percent to 294,500 yen.

But shares in Brother Industries Ltd (6448.T: ) fell 1 percent
to 982 yen after the company said a worker strike has forced it
to halt production at two industrial sewing machine factories in
China for about one week. [ID:nTOE658086]

Honda Motor Co’s (7267.T: ) output in China has been also
hampered by a series of strikes at its suppliers, prompting
concerns that unrest among workers in the world’s manufacturing
hub is spreading. [ID:nTOE65801O]

Honda shares were down 0.8 percent at 2,601 yen.

Stock Research

(Editing by Edwina Gibbs)

Nikkei comes off 6-mth lows, helped by China data