Japanese shares extended gains into a sixth straight session on Wednesday as investors bought bank shares again, helped by news that Mizuho Financial Group <8411.T> will this month return part of public money it borrowed in the late 1990s. The move would leave Mizuho, one of the world's largest banks by assets, with over two trillion yen ($18.17 billion) in taxpayers' money injected to bolster its fragile capital base, but is seen reflecting improving financial health at Japan's top banks. Shares of Mizuho, the market's most active issue by value, climbed 5.22 percent to 363,000 yen, helping send the sector subindex <.IBNKS.T> 2.47 percent higher. The key Nikkei average <.N225> was up 0.47 percent at 11,425.39 as of 0545 GMT, after earlier rising as high as 11,430.01 -- its highest intraday level since June 11, 2002. The Nikkei, which ended Tuesday's session at a 21-month high, now stands about six percent above its 25-day moving average. If the Nikkei ends higher, it would be the longest rally since January 2001, when it rose for seven sessions in a row, traders said. The broader TOPIX index <.TOPX> added 0.33 percent to 1,120.45.
"Investors, including foreigners, are shifting their eyes to banks from real estate firms," said Koichi Seki, an equity manager in the sales department at Chuo Securities. "Behind their buying are views that land prices are finally turning round (after a decade of decline), helping banks solve their bad loan problems sooner rather than later." Auto makers and other exporters were also favoured on a firming dollar. The dollar, buoyed by expectations of strong U.S. jobs growth and a breach of key technical support levels, stood at around 110.20 yen in late Tokyo trade, within shouting distance of Tuesday's four-month highs around 110.40. But overall gains in the stock market were limited as some players cashed in gains from domestic issues such as insurers and general contractors that had been boosted in recent sessions by growing optimism about Japan's economic recovery. Sompo Japan Insurance Inc <8755.T>, Japan's second-largest non-life insurer, slumped 4.74 percent to 985 yen, a day after it hit a 14-year intraday high of 1,041 yen. Bigger rival Millea Holdings <8766.T> lost 2.6 percent to 1.5 million yen.///