Tokyo gains as market awaits package

A Japanese trader breathes a sigh of relief after the Tokyo benchmark managed to maintain its gain for the third straight day.

HONG KONG, China -- Tokyo stocks pulled off a hat-trick of gains on Thursday as investors snapped up banks, securities and real estate shares.

The benchmark Nikkei average firmed 1 percent to 13,381.38 -- its third straight day of gains after recovering from the harsh effect of a Nasdaq fall.

The capital-weighted TOPIX index also gained 1 percent to 1,317.83.

Investors scooped up banks and real estate shares, confident that the emergency economic package due Friday would keep the market rising.

"A good chunk of the recent rise in the market can be attributed to the Bank of Japan's bold easing moves," said Hiroshi Arano, director of Dai-Ichi Kangyo Asset Management's investment trust management department.

"But there's no doubt that many investors, hungry for reform, are betting that this time is for real."

An emergency economic package will be unveiled by the government and ruling coalition on Friday.

It is expected to include measures to boost liquidity in the slumping real estate market, a special fund to absorb sales of shares held by banks, and steps to clean up banks' non-performing loans.

Investors funneled money into those sectors standing to benefit most directly from the package -- including brokers such as Nomura Securities Co Ltd, Japan's largest. Nomura, one of the day's most heavily traded issues, tacked on 2 percent, while Mizuho Holdings, the world's largest bank by assets, finished 2 percent higher.

Towa Real Estate Development Co Ltd jumped 11 percent.

Other East Asian markets closed

The Hong Kong, Taiwan and Korean stock markets were closed Thursday for national holidays.

In other regional markets, Australia's benchmark S&P/ASX200 closed up about 0.8 percent, gaining 26.2 points to 3220.5. Bluechips such such as Telstra, BHP and National Australia Bank were all higher, with most others steady.

The Straits Times index in Singapore also ended the day up strongly, but Malaysia and Indonesia were both a little weaker.

Reuters contributed to this report.

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