Nikkei edges up from 2-month low but Apple suppliers sag

Mon Jan 27, 2014 9:24pm EST

* Komatsu rises on strong Caterpillar results
    * Apple suppliers take hit on weak guidance
    * Sony falls after Moody's cut debt rating to 'junk'
    * Fed meeting, U.S. data in focus

    By Ayai Tomisawa
    TOKYO, Jan 28 (Reuters) - Japan's Nikkei average edged up on
Tuesday, clawing back some ground from a two-month low hit the
previous day as investors scooped up bargains, while
construction equipment makers like Komatsu jumped after
Caterpillar reported upbeat results.
    Bucking the market rise, Nitto Denko and other Apple
suppliers took a hit after the U.S. company missed Wall Street's
target for iPhone sales over the holiday shopping season and
offered a disappointing quarterly forecast. 
    The Nikkei was up 0.5 percent at 15,084.21 in
morning trade. On Monday it had dropped 2.5 percent to
15,005.73, its lowest closing level since Nov. 14, on concerns
about a selloff in emerging-market assets.
    Analysts said market sentiment had improved on Tuesday after
the Turkish lira, which has been leading the rout in emerging
currencies, rebounded from a record low after the central bank
called an emergency meeting on Tuesday.
    But they said trading may stay subdued as speculation that
the U.S. Federal Reserve will reduce its stimulus further has
put pressure on risk assets, especially emerging markets
dependent on external financing, as the Fed kicks off its
two-day policy meeting later in the day.
    "Eyes are on the U.S., and there are events and economic
indicators to focus on this week and next week," said Nobuhiko
Kuramochi, a strategist at Mizuho Securities.
    He added that the market was poised to rise further should
U.S. data such as gross domestic product and employment next
week confirm strength in the economy.
    Square Enix Holdings Co soared as much as 7 percent
to a five-year high of 2,762 yen after its new gaming
application for smartphones "Dragon Quest Monsters Super Light"
became the second most sold app at the Apple Store just two days
after it was launched. Mizuho Securities raised its target price
to 3,400 yen from 2,300 yen.
    Construction equipment makers Komatsu Ltd and
Hitachi Construction Machinery Co rose 2.4 percent and
2.2 percent, respectively, after Caterpillar Inc posted
a stronger-than-expected quarterly profit on Monday.
 
    On the other hand, Apple suppliers Alps Electric Co Ltd
, Taiyo Yuden Co Ltd, TDK Corp and
Nitto Denko Corp shed between 0.9 and 3.9 percent.
 
    Sony Corp dropped 2.6 percent after Moody's
Investors Service cut its debt rating to junk status.
 
    The Topix rose 0.5 percent to 1,235.30, while the
JPX-Nikkei Index 400, a recently introduced gauge
comprised of firms with high return on equity and strong
corporate governance, gained 0.4 percent to 11,153.00.
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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