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CORRECTED-Nikkei extends 2-year highs on upbeat global outlook, Japan Display rallies
October 4, 2017 / 2:26 AM / 15 days ago

CORRECTED-Nikkei extends 2-year highs on upbeat global outlook, Japan Display rallies

(Corrects name of Sakata Seed Corp in 12th paragraph)

* Nikkei, Topix both touch fresh 2-year highs

* Nikkei climbs along with ongoing rise in global equities

* Japan Display rallies, Aomori Bank slides

By Shinichi Saoshiro

TOKYO, Oct 4 (Reuters) - Japan’s Nikkei share average rose to two-year highs on Wednesday, supported by an upbeat outlook for the global economy, while Japan Display rallied on a report that it had developed methods to mass-produce OLED panels at a low cost.

The Nikkei was up 0.25 percent at 20,664.92 after reaching 20,689.05, its highest since August 2015.

The index drew a lift after Wall Street’s three major indexes closed at yet another set of record highs overnight.

Equities have recently advanced amid signs of strength in large economies such as that of the United States and Japan, with a lack of new developments in the Korea Peninsula easing investor risk aversion for the time being.

Data released so far this week showed Japan’s business mood reaching a decade-high while a measure of U.S. manufacturing activity surging to a 13-1/2-year high in September.

“Japanese stocks are rising as part of a broader ongoing trend in global equities generated by an improvement in economic prospects,” said Soichiro Monji, chief strategist at Daiwa SB Investments.

“Apart form the Bank of Japan, the major central banks are looking to exit easy monetary policies and investors shifting out of bonds into stocks are also seemingly supporting equity markets.”

Japan Display rose as much as 29 percent after the Nikkei business daily reported the company had developed a way to mass-produce lower-cost organic light-emitting diode (OLED) screens and would start as early as in 2019.

The Nikkei said Japan Display had started approaching dozens of potential investors including Sony Corp and Canon Inc to raise 100 billion yen ($888 million) for mass production.

Aomori Bank Ltd dropped as much as 9.5 percent to its lowest since November 2016 after announcing a plan to issue 2.6 million new shares through a public offering.

Fast Retailing rose as much as 2.4 percent to its highest since mid-July after the operator of Uniqlo clothing outlets said its domestic same-store sales rose 6.3 pct in September from a year earlier.

Sakata Seed Corp rose 3.1 percent after the seed and gardening product supplier said it bought Jordan-based cucumber cultivating company Al Mourog Al Kasbah for Agri & Vet Co.

The broader Topix was up 0.15 percent at 1,686.79 after touching 1,687.71, its highest since August 2015. ($1 = 112.6100 yen) (Editing by Sam Holmes)

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