* Exporters, banks attract buying
* If dollar trades at 100 yen, companies will likely post
marginal profits on net basis - Rakuten
By Ayai Tomisawa
TOKYO, Oct 4 Japan's Nikkei share average rose
on Tuesday morning after the yen weakened against the dollar on
data suggesting the U.S. manufacturing sector grew more than
expected in September.
The Nikkei gained 0.6 percent to 16,695.78 in
Exporters were well supported as the dollar was up 0.3
percent to a 13-day high at 101.925 yen, with Toyota
Motor Corp rising 1.6 percent and Honda Motor Co
gaining 1.9 percent.
"The upbeat U.S. data is lifting expectations for the strong
dollar trend, which helps earnings concerns recede for Japanese
exporters," said Hikaru Sato, senior technical analyst at Daiwa
The Institute for Supply Management (ISM) said on Monday its
index of national factory activity rose to 51.5 from 49.4 the
prior month, beating analyst expectations in a Reuters poll.
Levels above 50 indicate the sector is expanding.
Other exporters also attracted buying, with Panasonic Corp
gaining 1.6 percent and Hitachi Ltd rising 1.8
According to analysts at Rakuten Securities, if the dollar
trades at 100 yen, 1,377 companies listed on the main board
would report a drop of less than 10 percent in their pretax
profits this fiscal year. But the companies' net profit will
likely rise marginally, they added.
Banks outperformed, with Mitsubishi UFJ Financial Group
adding 1.4 percent and Mizuho Financial Group
advancing 2.1 percent.
The broader Topix advanced 0.6 percent to 1,339.00
and the JPX-Nikkei Index 400 rose 0.6 percent to
(Editing by Shri Navaratnam)