Nikkei extends rally into 7th day, longest win streak since Dec

Thu May 29, 2014 9:40pm EDT

* Consumer price rise lifting sentiment - analyst
    * Nikkei up 1.8 pct for the week, up 2.9 pct for the month

    By Ayai Tomisawa
    TOKYO, May 30 (Reuters) - Japan's Nikkei stock average
extended gains into a seventh day on Friday, its longest winning
streak since December, after another record close on Wall Street
and strong Japan consumer prices lifted sentiment.
    The Nikkei was up 0.3 percent at 14,718.29 in
midmorning trade. The index has risen 1.8 percent for the week
and gained 2.9 percent for the month.
    Japan's core consumer prices jumped 3.2 percent in April
from a year earlier for the fastest gain since February 1991,
government data showed on Friday, as an increase in the national
sales tax boosted prices across the board. 
    "The figures suggest that we can expect rents to rise and
companies' sales to increase, which will lead to increased
capital spending," said Shigemitsu Tsuruta, senior strategist at
SMBC Friend Securities. "Such expectations are lifting the mood,
and we are bullish about the Japanese market in the second half
of 2014."
    Exporters gained, with Toyota Motor Corp rising 1.4
percent and Honda Motor Co advancing 0.7 percent.
    Index heavyweights SoftBank Corp rose 1.4 percent
and Fast Retailing Co added 0.7 percent.
    U.S. stocks climbed after investors dismissed revised data
that showed the U.S. economy contracted for the first time in
three years in the first quarter, given more timely data has
suggested a recovery following a severe winter. 
    The broader Topix gained 0.2 percent to 1,202.76,
while the new JPX-Nikkei Index 400 rose 0.1 percent
to 10,956.25.    
    Further gains were limited as investors were reluctant to
take large positions before the weekend.

 (Editing by Chris Gallagher)
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