Nikkei soars 1.6 pct to near 2-wk high as exporters jump on weak yen * Exporters lead the way as yen weakens * Dentsu jumps on forecast hike * Contractors weak on poor earnings concern * China policy meeting in focus but limited impact on market - analyst By Ayai Tomisawa TOKYO, Nov 12 (Reuters) - Japanese stocks sped to a near two-week high on Tuesday morning, as exporters benefited from a softer yen although contractors sagged on worries about their earnings. The benchmark Nikkei share average rose 1.6 percent to 14,493.90 in mid-morning trade, comfortably trading above its 25-day moving average of 14,329.52 and the highest level since Oct 31. Exporters were higher, with Sony Corp rising 2.7 percent, Nissan Motor Co climbing 1.3 percent and Panasonic Corp adding 1.0 percent. The Topix rose 1.1 percent to 1,198.28, with all of its 33 subsectors are in positive territory. The dollar was trading at 99.52 against the yen, the highest mark since Sept. 20. A weaker yen sharpens exporters competitiveness overseas and bumps up their dollar earnings when repatriated. As long as the yens weakness is steady, exporters are in favor, but the markets gains are likely to be contained within a 14,000-14,500 range this week, said Hikaru Sato, a senior technical analyst at Daiwa Securities. He said the persistent speculation over when the U.S. Federal Reserve may start winding down its $85 billion-a-month bond-buying programme is likely to remain a key driver of the market. Fridays data showing an unexpected surge in U.S. jobs growth in October prompted markets to speculate of a possible December start to stimulus-tapering. Analysts said investors are also focusing on Tuesdays Chinese Communist Party policy-meeting for Chinas economic blueprint for the next decade. China has a big impact on the worlds economy, so investors are focused on it, but they are not expecting that there will be a big surprise from the meeting, said Makoto Kikuchi, the chief executive of Myojo Asset Management. Other notable gainers include Dentsu Inc, which rose 2.6 percent after the advertising agency lifted its operating profit forecast for the year ending March to 65.6 billion yen from the previously forecast 58.5 billion yen. Contractors were weak, with Obayashi Corp tumbling 4.1 percent, Kajima Corp falling 1.5 percent and Shimizu Corp dropping 0.6 percent after the Nikkei business daily reported that Obayashis operating profit for the April-Sept period fell short of market expectations. The contractors will release their results in the afternoon.
Posted on: Tue, 12 Nov 2013 03:12:09 +0000
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