* Futures-led buying pushes up Nikkei
* Mizuho units jump on buyout news
* Shinsei Bank falls, sources say to issue new shares
* NEC drops on outlook cut, brokerage downgrade
By Ayai Tomisawa and Antoni Slodkowski
TOKYO, Feb 28 (Reuters) - Japan's Nikkei average reversed
early losses to gain 0.8 percent in thin trade on Monday, with
some attributing the move to futures-led buying on a weaker yen
against the euro and to month-end window-dressing.
The banking sector saw much action with Mizuho Trust &
Banking Co Ltd <8404.T> and other units of Mizuho Financial Group
<8411.T> jumping after a source told Reuters the Japanese bank
plans to buy them out in a deal worth about $4 billion.
[]
But Shinsei Bank <8303.T> fell after sources said it was
planning to raise capital. []
Despite the Nikkei's fall of almost 3 percent last week,
market players said bulls were eager to buy on dips, as the
factors that fuelled a 15 percent market rally since November --
excess liquidity and stronger corporate earnings -- remained
largely intact.
By mid-afternoon, the benchmark Nikkei <> added 0.8
percent or 88 points to 10,614.76. The broader Topix <>
advanced 1 percent to 951.58
Analysts said program trading players could be buying back
futures as the euro was now around 112.37 yen, compared to its
low of 111.95 in early morning trade.
"It could be that commodity trading advisers are reacting to
slightly weaker yen and Asian share gains," said Hiroichi Nishi,
general manager at Nikko Cordial Securities.
The Nikkei's gains came despite climbs in oil prices <CLc1>
although market players said the worsening situation in Libya
could easily pressure the market again.
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For more on Middle East unrest: []
For graphics click http://r.reuters.com/nym77r
Interactive factbox http://link.reuters.com/puk87r
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This week, the market is also focusing on U.S Fed Chairman
Ben Bernanke's testimony before the Senate Banking Committee on
Tuesday and the U.S. jobs data due out on Friday.
"Later this week, optimism about a recovery in the U.S.
economy may lift the market," said Tsuyoshi Segawa, an equity
strategist at Mizuho Securities, adding that the Nikkei benchmark
will likely trade in a wide 10,300-10,700 range this week.
Mizuho plans to buy out minority shareholders in investment
bank Mizuho Securities Co <8606.T>, retail broker Mizuho
Investors Securities <8607.T> and trust bank Mizuho Trust &
Banking, a source with knowledge of the matter told Reuters on
Saturday.
Shares of Mizuho Securities gained 12 percent to 250 yen in
heavy volume, while Mizuho Investors jumped 4.7 percent to 90 yen
and Mizuho Trust rose 4.8 percent to 88 yen.
Mizuho Financial Group, Japan's second-largest bank by
assets, was up 1.2 percent at 167 yen.
"This consolidation should be a good move in the long term as
the bank is expected to streamline businesses and cut costs,"
said Hideyuki Okoshi, general manager at Chibagin Securities. He
noted, however, that it was not yet clear how much dilution
Mizuho shareholders would suffer in the financing of the deal.
Shinsei Bank <8303.T> fell 1.9 percent to 103 yen after
falling to as low as 97 yen after sources said the bank is
planning to raise about 50 billion yen ($612 million) through a
new share issue to bolster its capital base.
NEC Corp <6701.T> fell 3.9 percent to 224 yen after it
slashed its full-year earnings forecast on Friday, and Goldman
Sachs downgraded the stock to "neutral" from "buy" and removed it
from its "conviction buy" list. []
(Additional reporting by Nathan Layne; Editing by Edwina Gibbs)
