Nikkei rises helped by weakening yen, China share gains

Tue Jul 30, 2013 12:39am EDT

* Nikkei extends morning's gains, up 1.4 pct, Topix up 1.7
pct
    * Weak yen lifting exporters

    By Ayai Tomisawa
    TOKYO, July 30 (Reuters) - Japan's Nikkei average rose
Tuesday afternoon, led by exporters as the yen weakened against
the dollar, while sentiment was boosted after Chinese shares
rose for the first time in five days.
    The benchmark Nikkei gained 1.4 percent to 13,848.50
in early afternoon trade. It was up only 0.4 percent at the
midday break.
    The market was sensitive to currency levels after the dollar
touched a nearly one-month low of 97.61 yen on Monday, but
futures buying kicked in after the lunch break as the dollar
rose against the yen, analysts said. The dollar last traded at
98.35 yen.
    "As the dollar is comfortably trading above 98 yen, those
who were taking profits lately decided to buy back," said Isao
Kubo, equity strategist at Nissay Asset Management.
    Exporters were strong, with Toyota Motor Corp 
rising 3.2 percent, Sony Corp 3.6 percent and Panasonic
Corp 1.7 percent. A weak yen boosts exporters'
competitiveness abroad as well as their earnings when
repatriated.
    The broader Topix gained 1.7 percent to 1,147.30.
    The Shanghai Composite Index, which had losses the
past four days, was up 1.1 percent.
    The gain is "helping the mood as weakness in Chinese shares
has been a factor dragging down the Japanese market," Nissay's
Kubo said.
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