* Nikkei hits 4-mth high before running out of steam
* JAL tumbles to record low of 60 yen on bankruptcy worries
* 'Golden Cross' may point to further gains in Nikkei -analyst
* Nikkei helped by rebound in tech stocks in 2009, banks weak
By Aiko Hayashi
TOKYO, Dec 30 (Reuters) - Japan's Nikkei average is poised to
book gains for 2009, with shares of high-tech exporters having
led a rebound rally on a weaker yen and as economic stimulus
measures helped turn around the world economy.
On the Tokyo stock market's final trading day of the year the
Nikkei was showing a rise of about 20 percent for 2009, following
a 42 percent plunge -- the biggest loss in its 58-year history --
last year when investors saw the global financial crisis take a
heavy toll on risky assets including stocks.
The benchmark was flat by mid-afternoon on Wednesday after
rising to a four-month high as high-tech exporters such as Canon
Inc <7751.T> received a boost from a weaker yen.
But gains were limited as Japan Airlines (JAL) <9205.T> at
one point tumbled 32 percent to a record low of 60 yen on growing
investor worries the struggling carrier will be restructured in
bankruptcy court as part of a state bailout. []
Transport Minister Seiji Maehara said cabinet ministers would
meet at 6 p.m. (0900 GMT) on Wednesday to discuss JAL.
[]
"Weakening in the yen and a gradual recovery in the economy
and growing demand for companies helped buoy the market in time
for the year-end," said Naoki Koga, a senior fund manager at
Toyota Asset Management.
"But domestic-demand sectors, on the other hand, fell out of
favour this year due to uncertainty about the government's
policy. Financial stocks, in particular, were hurt by worries
about capital raisings."
The benchmark Nikkei <> was flat at 10,634.27 after
earlier rising to 10,707.51, its highest since Aug. 31. It has
clawed back about 50 percent since hitting a 26-year closing low
in March.
The broader Topix <> dipped 0.2 percent to 914.03.
In one encouraging technical sign for the Nikkei, its 25-day
moving average edged above its 75-day moving average, a
phenomenon known as the "Golden Cross" that can often indicate
further rises and is regarded as a buying signal.
"We're likely to see the market off to a strong start in the
new year. But the focus in the first half will be on
corporate earnings for the next business year, with government
policies holding a key for their direction," Koga said.
Japanese financial markets will be closed on Thursday and
Friday for the New Year's holiday.
TECH STOCKS GAIN, JAL DRAG
The dollar's surge against the yen to a two-month high helped
shares of exporters on Wednesday. Investors welcome a weaker yen
because it boosts exporters' profits when repatriated.
The greenback rose 0.2 percent to 92.14 yen <JPY=>, led by
buying on last-minute commercial needs before the end of the
year. []
Chip-tester maker Advantest Corp <6857.T> rose 0.6 percent to
2,450 yen, Canon Inc <7751.T> gained 1 percent to 3,950 yen and
Hitachi Ltd <6501.T> added 4.4 percent to 286 yen. Honda Motor Co
<7267.T> edged up 0.3 percent to 3,150 yen.
But JAL lost 25 percent to 66 yen.
Sources have told Reuters that a state-backed turnaround fund
now weighing whether to bail out JAL is considering using a
bankruptcy procedure similar to Chapter 11 in the United States
as part of its revival plan.
The Nikkei business daily reported that the fund plans to
guarantee the struggling carrier's fuel payments and other
commercial transactions if it is restructured in bankruptcy
court. []
"There's still a lot of uncertainty about what's going to
happen to JAL, and this is inviting selling," said Tomomi
Yamashita, a fund manager at Shinkin Asset Management.
Japan's top banks, JAL's main creditors, fell amid growing
investor worries about the struggling carrier's possible
bankruptcy.
Mitsubishi UFJ Financial Group <8306.T> fell 0.2 percent to
453 yen and Mizuho Financial Group <8411.T> slipped 1.2 percent
to 165 yen.
Bankruptcy proceedings usually lead to a sharp cut in the
payment of sales receivable and other creditor claims.
HIGH-TECHS SHINE IN 2009, BANKS LAG BEHIND
High-tech exporters led gains in the Japanese market in 2009,
while banking shares lagged behind, hurt by worries about equity
financing as well as growing fear that JAL might go bankrupt.
The Tokyo stock market's electrical machinery index
<.IELEC.T> has gained about 40 percent this year, outperforming a
gain of around 6 percent in the Topix index and a more than 20
percent slide in the banking index <.IBNKS.T>.
Market analysts say the big banks have been hit by a
combination of concern about JAL and worry that Mizuho and
Sumitomo Mitsui Financial Group might be forced into equity
fundraising early next year.
Japan's top bank Mitsubishi UFJ has already raised about 1
trillion yen through a new share issue. []
Investors will keep a close eye on currency moves in the new
year as that will impact earnings prospects for exporters,
analysts said.
(Additional reporting by Elaine Lies; Editing by Michael
Watson)
