Japan's Nikkei stock average edged up 0.9 per cent today, with Sanyo surging after saying it had secured buyers for its batteries used in hybrid cars.
KK DaVinci Holdings climbed 5.9 per cent to 21,700 yen after sources said Daiwa Securities Group Inc would buy all shares of REIT asset manager DaVinci Select from DaVinci Holdings.
After the market close, Daiwa Securities announced that it would buy the DaVinci Select shares for 3.4 billion yen.
The Nikkei regained some ground after marking its worst percentage slide since late March the previous day, but its gains were capped after mixed indicators underscored doubts about how fast the U.S. recession is easing.
The Nikkei rose 87.97 points to 9,840.85, while the broader Topix rose 0.9 per cent to 923.02.
The rise helped the Nikkei make up some ground after sliding 2.9 per cent yesterday, when it underperformed the MSCI broad measure of Asian stocks outside Japan, which fell just 1.1 per cent.
That disparity shrank today as the Nikkei rose even as the MSCI's Asian shares index fell again, bringing its losses over the last two days to 1.9 per cent, roughly in line with the Nikkei's fall over the same span.
Sanyo's shares jumped 14.3 per cent to 279 yen, outpacing a 1.7 per cent gain in the electrical machinery subindex. Sanyo was the second-most active share by volume on the Tokyo exchange's first section.
Sanyo said yesterday that car makers in the United States, Japan and Europe have agreed to buy its auto-use lithium-ion batteries, as it looks to take advantage of growing demand for hybrid cars.
Car battery maker GS Yuasa, a rival of Sanyo's in auto-use rechargeable batteries, jumped 12.5 per cent to 1,180 yen, and was the third-most active issue by volume after Sanyo.
Trade was active, with 2.5 billion shares changing hands on the Tokyo exchange's first section, equal with last week's daily average.
Advancers outpaced decliners by more than 3 to 1.
Reuters