Nikkei rises 1 pct to 4-month high as Sony jumps

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By Taiga Uranaka

TOKYO, May 15 (Reuters) - Japan's Nikkei share average rose 1 percent to a four-month high on Thursday, with Sony Corp (6758.T: Quote, Profile, Research) jumping 9 percent on its bigger-than-expected outlook.

Exporters such as Honda Motor Co Ltd (7267.T: Quote, Profile, Research) also climbed on a softer yen against the dollar.

"With the dollar regaining the 105 yen level, there are expectations for earnings improvements as many companies assumed 100 yen in their outlook," said Norio Shimura, deputy head of equity department at Chuo Securities.

"Sony's outlook gave a sense of reassurance to the market," he added.

The market also got a boost from steel shares such as Nippon Steel Corp (5401.T: Quote, Profile, Research) on a media report that they had reached a broad agreement with Toyota Motor Corp (7203.T: Quote, Profile, Research) to raise steel prices by more than 30 percent. [ID:nT256343]

The benchmark Nikkei average .N225 ended the morning up 144.86 points at 14,263.41. The broader TOPIX index gained 1.6 percent to 1,394.26.

With the Nikkei gaining ground above 14,000, market participants said retail investors and other players who had been on the sidelines were likely to be compelled back to the market.