Nikkei rises after S&P hits fresh high; Fanuc surges on strong earnings

Thu Jul 24, 2014 10:03pm EDT

* Index heavy Fanuc contributes 27 points, or more than a
quarter of Nikkei gains
    * Advantest dives on worse-than-expected profits
    * For the week, Nikkei has risen 1.0 pct

    By Ayai Tomisawa
    TOKYO, July 25 (Reuters) - Japan's Nikkei share average rose
on Friday after the S&P 500 set another record closing high and
as index heavyweight Fanuc Corp jumped after reporting
strong profits.
    The Nikkei rose 0.6 percent to 15,377.00 points by
mid-morning, after falling 0.3 percent on the previous day.
    For the week, the index looked set to gain 1 percent.
    Industrial robot maker Fanuc soared 4.4 percent to 18,230
yen, the highest since May 1 and the second most traded stock by
turnover after its net profit for the April-June quarter nearly
doubled to 45.1 billion yen. It contributed a hefty 27 points to
the Nikkei.
    "We are not seeing much activity on the broader market.
Individual shares are moving based on their results and this
trend may last during the earnings season," said Norihiro
Fujito, senior investment strategist at Mitsubishi UFJ Morgan
Stanley Securities.
    Fujito said that long-only investors have stayed on the
sidelines as geopolitical concerns in Gaza and Ukraine have
curbed their risk appetite. He also said that investors are
waiting for more positive trading cues, after the International
Monetary Fund cut its 2014 forecast for global economic growth.
 
    "The prospect for the global economy has not been too bad
thanks to recently strong U.S. shares and China data, but we
should not be overly optimistic," he said.
    Bucking the strength, Advantest Corp tumbled 8.0
percent to a two-month low after disappointing the market with
worse-than-expected profits.
    Exporters were mostly in demand, with Sony Corp 
rising 2.3 percent, Panasonic Corp adding 1.2 percent
and Nissan Motor Co gaining 0.3 percent.
    The broader Topix gained 0.4 percent, and the
JPX-Nikkei Index 400 advanced 0.4 percent to
11,611.18.

 (Editing by Kim Coghill)
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