October 24, 2017 / 7:03 AM / 2 years ago

Nikkei's record win streak hits 16 days as large caps draw buyers

* Exporters and banks gain ground

* Yaskawa drops 3.6 pct after 1H earnings release

By Ayai Tomisawa

TOKYO, Oct 24 (Reuters) - Japan’s Nikkei share average extended its record winning streak to 16 days on Tuesday, supported by buying of large-cap stocks, while Yaskawa Electric tumbled after disappointing investors with tepid profit forecasts.

The Nikkei, which was down part of the day, rose 0.5 percent to end at 21,805.17.

The index notched a fresh 21-year high as a victory of Prime Minister Shinzo Abe’s coalition in Sunday’s election continued to underpin sentiment.

The dollar inched 0.1 percent higher to 113.55 yen, moving closer to a three-month high of 114.10 against the yen hit after Sunday’s general election.

“Hopes for a global economic recovery and U.S. shares’ strength are making fund managers generous on Japanese stocks,” said Chihiro Ohta, general manager of investment research at SMBC Nikko Securities.

Other traders said that investors are weighing how U.S. monetary policy might change under a new Federal Reserve chair, and what new economic policies the Abe administration might introduce.

U.S. President Donald Trump told reporters on Monday he was “very, very close” to a decision after interviewing five candidates for the post of Fed chair.

Large cap stocks including exporters gained ground, with Toyota Motor Corp rising 0.7 percent, Murata Manufacturing surging 1.8 percent and Nintendo climbing 0.9 percent.

Banking stocks attracted buying, with Mitsubishi UFJ Financial Group up 1.6 percent and Mizuho Financial Group by 1.2 percent.

Yaskawa Electric Corp, one of the earliest companies to report first-half earnings, dived 3.6 percent and was the seventh most-traded stock by turnover.

The electrical equipment maker raised its full-year operating profit projection to 54 billion yen ($475.6 million)from the previously forecast 45.5 billion yen, but investors were disappointed because the new forecast did not top the market consensus.

The broader Topix rose 0.7 percent to 1,756.92. ($1 = 113.5500 yen) (Reporting by Ayai Tomisawa; Editing by Richard Borsuk)

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