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Nikkei rises as weak yen helps mood; Hitachi shines
October 5, 2016 / 2:26 AM / a year ago

Nikkei rises as weak yen helps mood; Hitachi shines

* Exporters, financials outperform overall market

* Nikkei to stay in narrow range before US jobs data - analyst

By Ayai Tomisawa

TOKYO, Oct 5 (Reuters) - Japan’s Nikkei share average rose on Wednesday morning on a weak yen, while Hitachi Ltd jumped after a Nikkei report that it plans to sell Hitachi Koki Co and a portion of Hitachi Kokusai Electric for a total of more than 100 billion yen.

Shares of Hitachi surged 4.7 percent, Hitachi Koki Co soared 9.7 percent and Hitachi Kokusai Electric Inc rose 3.0 percent.

At midmorning trade, the Nikkei gained 0.4 percent to 16,802.97, helped mainly by advances for exporters and financial stocks.

“I am not too bullish about the Japanese market going forward before interim earnings, but if the yen stays on the weak side, the market should be supported for now,” said Isao Kubo, equity strategist at Nissay Asset Management.

He said that the market will likely stay in a narrow range through the week as investors stay cautious before the release of U.S. jobs data on Friday.

Kubo added that investors’ focus will turn to corporate earnings reports, starting later this month, for the first half of the fiscal year ending in March 2017.

On Wednesday, Toyota Motor Corp rose 1.1 percent, Nissan Motor Co gained 1.5 percent, and Advantest Corp climbed 1.7 percent after the dollar rose to a three-week high of 102.965 yen overnight, before edging down 0.2 percent to 102.705 yen.

Brokerages were higher, with Nomura Holdings rising 1.3 percent and Daiwa Securities 1.0 percent.

The broader Topix gained 0.6 percent to 1,347.98 and the JPX-Nikkei Index 400 rose 0.6 percent to 12,064.37. (Editing by Richard Borsuk)

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