Nikkei rises on earnings, all eyes on BOJ for easing hint

Tue Apr 29, 2014 9:26pm EDT

* Nikkei up 0.7 pct, following gains on Wall Street
    * Kyocera, Mitsubishi Elec lead gains after upbeat earning
guidance
    * Few expect BOJ easing on Wed but many see one later in the
year

    By Hideyuki Sano
    TOKYO, April 30 (Reuters) - Japanese shares rose on
Wednesday, supported by some upbeat domestic earnings guidance
and gains in Wall Street shares, with investors looking to the
Bank of Japan's ongoing policy meeting.
    While few market players think the BOJ will ease its policy
on Wednesday, many of them expect stimulus later in the year.
They will be scrutinising the BOJ's economic report and Governor
Haruhiko Kuroda's news conference for any hint on the timing.
    The Nikkei rose 0.7 percent to 14,391.04 after a
market holiday on Tuesday. Wall Street shares have gained so far
this week, helped also by strong earnings results.
    Kyocera Corp gained 3.4 percent after the ceramics
manufacturer announced an upbeat outlook for the year to March
2015, citing firm demand for its smartphone and tablet parts. 
    Mitsubishi Electric rose 3.3 percent after giving
optimistic guidance, in which it said it expected record revenue
and net profit in 2014/15.
    Carmakers led the gains after the yen hit three-week low
versus the dollar, with Toyota Motor Co rising 1.9
percent and Honda motor 1.8 percent.
    "I think the market will be supported around the current
levels. Even when some companies miss market expectations, their
share prices do not necessarily fall because the valuation has
become reasonable," said Toshiyuki Kanayama, market analyst at
Monex Securities.
    Since the start of 2014, the Nikkei has dropped 11.5
percent, making it the worst performer among major markets.
    The Nikkei looks set to post its fourth straight month of
losses in April, having fallen 2.8 percent so far, which would
be longest such streak since 2008.
    That partly reflects profit-taking after an outsized gain of
57 percent last year, but the weakness stems also from receding
expectations of BOJ easing and growing frustration over Prime
Minister Shinzo Abe's lack of progress in implementing
structural reform.
    Some speculators had bet that Kuroda would unveil stimulus
as early as this month to counter the effect of sales tax hike
that kicked in on April 1, but his bullish comments on the
Japanese economy has quashed such speculation.

 (Editing by Eric Meijer)
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