* Nikkei is on track to fall 0.4 for the week
* Foreigners net sellers of cash stocks for 1st time in 9
* Banks, brokers and insurers gain
By Ayai Tomisawa
TOKYO, June 16 Japan's Nikkei share average
rebounded on Friday morning, rising for the first time in the
week as the dollar bounced against the yen after solid U.S.
data, while financial stocks attracted strong gains.
Trading in Takata Corp stock was suspended by the
Tokyo Stock Exchange, after media reported that the company is
preparing to file for bankruptcy as early as next week as the
safety equipment manufacturer attempts to manage the world's
largest safety recall.
Takata is working toward a deal for financial backing from
U.S. auto-parts maker Key Safety Systems Inc.
By midmorning the Nikkei gained 0.5 percent to
19,936.61, poised for its first daily gain in five days. The
benchmark index is on track to fall 0.4 percent for the week.
Markets are focused on the Bank of Japan's policy decision
later in the day, followed by a news conference with BOJ
Governor Haruhiko Kuroda. The central bank is set to keep
monetary policy steady and signal its confidence in a
The Japanese market languished on Thursday after weak U.S.
inflation data overshadowed an interest hike by the U.S. Federal
Reserve. But traders said that concerns about the U.S. economy
have receded for now, as solid U.S. indicators strengthened the
case for the Fed to continue tightening monetary policy this
"The U.S. data overnight triggered shortcovering," said
Norihiro Fujito, a senior investment strategist at Mitsubishi
UFJ Morgan Stanley Securities.
The dollar rose 0.2 percent to 111.11 yen after data
showed that the number of Americans filing unemployment claims
fell more than expected last week. It suggested that slack in
the labor market was shrinking, and the New York manufacturing
and Philadelphia Fed business conditions indexes for June beat
But Fujito added that although excess pessimism over the
U.S. economy seems to have receded, the market needs fresh
catalysts for investors to chase the Nikkei back to the 20,000
The Japan Exchange Group, operator of the Tokyo bourse, said
foreign investors last week turned net sellers of Japanese cash
stocks for the first time in nine weeks.
They sold a net 35.4 billion yen in Japanese cash stocks
during that week, after buying 1.86 trillion yen from the second
week of April through the last week of May.
Friday's notable gainers were financial stocks, with
Mitsubishi UFJ Financial Group rising 1.7 percent,
Nomura Holdings soaring 2.7 percent and insurer T&D
Holdings advancing 1.6 percent.
Tech shares underperformed, hit by weak weakness in their
U.S. counterparts. Tokyo Electron shed 1.1 percent,
Advantest Corp declined 0.1 percent, TDK Corp
shed 0.4 percent and Sharp Corp was flat.
The broader Topix gained 0.6 percent to 1,596.90 and
the JPX-Nikkei Index 400 added 0.6 percent to