Nikkei rises, Nomura drops on insider trading

Japan's Nikkei share average advanced on Thursday as investors picked up companies that had lagged this year's rally, though Nomura Holdings fell after sources said an employee at the firm was the source of a leak in an insider trading case. Nomura, Japan's top investment bank, shed 1.3%, extending a 4.1% loss the previous session. Click here for Cloud Computing Also Read Related Stories News Now - Nikkei eases off 8-1/2 mth highs - Nikkei gains for 5th day - RBI may cut key policy rate by 0.75% in 2012: Nomura - Nomura trims RBI rate cut expectation to 75 bps - Asian shares ease on China growth worry, dollar stays firm - Q4 worries hit TCS shares Japan's securities regulator recommended a 50,000 yen fine against Chuo Mitsui Asset Trust, a unit of Sumitomo Mitsui Trust Holdings Inc, on Wednesday, saying the asset manager sold Inpex Corp shares after a tip-off from a broker about its plan for a roughly $6 billion offering. Sumitomo Mitsui Trust recovered 3.3% after Wednesday's 5.1% drop. The Nikkei was up 0.4% at 10,124.76 after snapping a five-session winning run on Wednesday, while the broader Topix added 0.4% to 862.61. "Some stocks such as steel and shippers that are not good stories structurally have done pretty well in this rally - we are almost in the 13th week of buying. We would be looking for them to head back down," said a senior dealer at a foreign bank. Japan's iron & steel sector lost 0.4%, while the shippers subindex eased 0.2%. "Some of the better stocks that have lagged, like Gree, DeNA and Sanrio, are going to outperform a little bit." Sanrio Co climbed 3.8% after the maker of Hello Kitty toys raised its year-end dividend forecast for the fiscal year ending March by 25% to 25 yen due to decent sales, particularly in the United States. Mobile social gaming firm DeNA Co Ltd added 1%, while rival Gree Inc slipped 0.6%. Technical indicators suggest a pullback could be on the cards, with the Topix has rallying 18.5% so far this year and with its 14-day relative strength index at 70. Market participants remained upbeat as a weaker yen would likely lift Japanese corporate earnings expectations. Goldman Sachs raised its Topix six-month target to 970 from 900, representing an upside of 12.4% from current levels. "While we see risks of near-term consolidation, we believe the fundamental factors remain supportive for the market, and we recommend investors to add to positions on any weakness," Goldman Sachs analysts said in a report. Investors are likely to keep an eye on HSBC's flash report on China's factory activity due at 0230 GMT for further signs on whether the world's second-largest economy is heading for an abrupt slowdown. Global miner BHP Billiton said this week that it saw signs of "flattening" iron-ore demand from China, the world's top metals consumer, which had weighed on commodity markets and energy shares.