Nikkei edges higher on bargain hunting

Nikkei:8,797.78 (+25.42) Hang Seng:19,582.88 (–169.60) Shanghai Comp:2,612.19 (–3.07)

JAPAN’S NIKKEI average ticked up on bargain hunting yesterday and marked its first weekly gain in five weeks, with investors awaiting a speech from Fed chairman Ben Bernanke.

Investors have also been latching on to stocks that have lost much ground this month. Elpida Memory, a maker of dynamic random access memory chips, surged 17.6 per cent to 535 yen after having slid more than 40 per cent in the one month to Thursday’s close.

Pharmaceutical company Kyowa Hakko Kirin rose 3.3 per cent to 785 yen after the company said it would buy back up to 4.4 per cent of its own shares.

Telecommunications company KDDI Corp rose 2.8 per cent to 557,000 yen on two brokerage upgrades to “outperform”.

Hong Kong shares sagged, with losses in high-beta plays offsetting earnings-driven gains in Chinese banks as turnover sank to its lowest in a month ahead Mr Bernanke’s speech.

Industrial and Commercial Bank of China was the top boost to the Hang Seng, gaining 1.44 per cent after reporting a record first-half profit on better pricing power for loans. – (Reuters)