Tokyo’s markets were higher on Thursday, as the Nikkei 225 had its highest close in a month and a half with a gain of 2.41 percent to 16,832.22.
The Topix index added 2.48 percent to 1,615.15 while the Mothers market was 5.52 percent higher to 720.5.
Banks were higher on rumors that investor Warren Buffett is looking to buy a stake in Bear Stearns (NYSE: BSC), boosting investor confidence that the subprime crisis will not cripple the financial services sector.
Among banks, Mizuho (TYO: 8411; NYSE: MFG) was up 4.78 percent to ¥658,000, while Resona Holdings (TYO: 8308) added 6.9 percent to ¥190,000.
Sumitomo Mitsui (TYO: 8316) gained 7 percent to ¥891,000. Regional bank Suruga Bank Ltd (TYO: 8358) was up 11 percent to ¥1,402 after it said it is talking to Japan Post about a deal.
Brokers were also higher, with Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) closing at ¥1,938 and Daiwa Securities (TYO: 8601) adding 8.6 percent to ¥1,114.
The consumer finance sector also saw gains after Takefuji (TYO: 8564) was reported to be preparing results showing that it will cross over into profit this year after losing ¥481.2 billion last year.
Takefuji was 16 percent higher to ¥2,155 after gaining the full amount allowed by the exchange in a session, while Aiful (TYO: 8515) and Promise (TYO: 8574) each gained 15 percent, to ¥1,909 and ¥2,850 respectively.
In the real estate sector, Deutsche Bank (FWB: DBK; NYSE: DB) raised its recommendations on both Mitsui Fudosan (TYO: 8801; NAS: MDSFF) and Sumitomo Realty & Development (TYO: 8830) from “hold” to “buy”.
Mitsui Fudosan was 7.7 percent higher to ¥3,210, while Sumitomo was up 7.9 percent to ¥4,090.
Elsewhere, Japan Tobacco (TYO: 2914) added 4.5 percent to ¥634,000 on a report out of London that it will bid on Turkey’s state-owned cigarette maker, Tekel.