Nikkei gains as investors pin hopes on BOJ easing
* Real estate sector gains on expectations of BOJ action * NTT DoCoMo drops after cutting profit outlook * Nippon Sheet Glass up, forecast better than expected By Sophie Knight TOKYO, Oct 29 (Reuters) - Japan's Nikkei share average rose on Monday as investors bet that the Bank of Japan will substantially expand its easing programme when it meets on Tuesday, though NTT DoCoMo Inc weighed on the index after a profit warning. The Nikkei added 0.2 percent to 8,949.43 by mid-morning after tumbling off a four-week high on Friday. The broader Topix was also up 0.2 percent, at 742.50. The benchmark has gained 5 percent since Oct. 12 on expectations that the BOJ will expand its asset purchases by at least 10 trillion yen, and on hopes that it may commit to injecting cash until 1 percent inflation is achieved. "I don't think there'll be disappointment if they end up injecting 20 trillion yen or even 10 trillion, but it could be a case of buy-the-rumour, sell-the-fact," said Tetsuro Ii, CEO of Commons Asset Management. Real estate, an industry expected to benefit from possible further purchases of real estate investment trusts by the central bank, was the second-best performing subindex , with a gain of 1.5 percent. Mobile provider NTT Docomo Inc lost 4.5 percent to hit a lifetime low, after cutting its full-year operating profit outlook by 9 percent as it struggles to catch up to iPhone-selling rivals Softbank Corp and KDDI Corp . "Ultimately we think this proves that unless DoCoMo introduces the iPhone, the impact on its finances will become all the greater," said Morgan Stanley MUFG analyst Tetsuro Tsusaka in a note. The stock was the most-traded stock by turnover on the main board, ahead of Sumitomo Mitsui Financial Group Inc, which gained 1.4 percent after estimating that first-half net profit beat guidance by a wide margin, partly thanks to its trading of Japanese bonds amid high appetite for sovereign debt. Honda Motor Co Ltd, Nomura Holdings Inc, Renesas Electronics Corp are among companies reporting after the bell on Monday. Sixty-seven percent of the 21 Nikkei companies that have reported results so far have undershot analysts' predictions in Thomson Reuters' StarMine. But many market participants say that exaggerated pessimism ahead of the earnings season has meant robust share price gains for quite a few stocks that did not have results that were worse than analysts' predictions. Nippon Sheet Glass Co Ltd rose 5 percent after the Nikkei business newspaper said the company was likely to post a 3 billion yen ($38 million) operating loss for the second quarter, smaller than the 4.5 billion yen loss forecast and narrower than the 8.5 billion yen loss in the first quarter. NEC Corp added 2.1 percent after beating forecasts with an operating profit of 47.4 billion yen for the first half, despite logging a small operating loss in the first quarter.
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