nikkei hits 6 week closing high

The Nikkei is a very good barometer atm IMO.

TOKYO, Feb 27 (Reuters) - Japan's Nikkei average rose 1.5
percent on Wednesday to post a six-week closing high, with
blue-chip shares such as Sony Corp <6758.T> driving gains after
a $15 billion share buyback plan announced by IBM
boosted investor confidence.

Mizuho Financial Group <8411.T> and other financials also
gained on growing relief about the stability of U.S. bond
insurers after Moody's affirmed its credit rating on MBIA Inc
, while higher oil prices boosted energy shares.

Another notable stock was heavy machinery maker IHI Corp
<7013.T>. It fell 6.4 percent to 218 yen after a newspaper said
top executives knew of losses at a key division before it issued
corporate bonds last year, a report the company denied.
[ID:nT83488]

Fujio Ando, a senior managing director at Chibagin Asset
Management, said the market appears to be on a recovery track
but he still expects more fluctuations.

"I will be cautious into early next month as we expect to
see a string of indicators such as U.S. jobs data ... and
Japanese GDP figures, which could possibly be revised down," he
said.

"At present, many investors expect the U.S. economy to
regain ground in October-December this year, but if that falls
through, we should expect a further spike down in markets."

For clues to the Federal Reserve's outlook on rates,
investors were also awaiting testimony from Fed Chairman Ben
Bernanke later in the day to the House of Representatives
Financial Services Committee.

The Nikkei average <.N225> rose 1.5 percent or 206.58 points
to 14,031.30, the highest close since Jan. 11.

The broader TOPIX index <.TOPX> added 1.3 percent or 17.05
points to 1,364.52.

Ken Masuda, a senior equities dealer at Shinko Securities,
said news of IBM's share buyback and stabilising bond insurers
drove the market higher, but gains will likely be limited at
around 14,500 as the market has recently been severely battered.



BLUE-CHIPS GAIN

Blue-chip exporters climbed, with Sony up 2.3 percent at
5,320 yen, Kyocera Corp <6971.T> climbing 2.2 percent to 8,950
yen and Advantest Corp <6857.T> rising 2.6 percent to 2,800 yen.

Growing relief helped lead financials higher, with Mizuho up
3.3 percent at 471,000 yen and Sumitomo Mitsui Financial Group
<8316.T> gaining 2 percent to 815,000 yen. Mitsubishi UFJ
Financial Group <8306.T> rose 1.2 percent to 997 yen.

Japan's largest non-life insurer, Millea Holdings Inc
<8766.T>, added 1.5 percent to 4,140 yen and Sompo Japan
Insurance <8755.T> gained 3.4 percent to 1,015 yen.

Oil held over $101 yen a barrel in Asian trade, with U.S.
crude at $101.16 at 0616 GMT.

Nippon Oil Corp <5001.T> gained 2.5 percent to 748 yen and
oil field developer Inpex Holdings <1605.T> rose 3.4 percent to
1.22 million yen.

Trade was moderate on the Tokyo exchange's first section,
with 2.1 billion shares changing hands, in line with last week's
daily average.

Advancing shares outpaced decliners by a ratio of more than
five to one.