Nikkei rises on firm Wall Street; market awaits Fed outcome

Tue Sep 16, 2014 10:00pm EDT

* U.S. rate hike good for Japan market long term - traders
    * Pioneer jumps on sale of disc-jockeying audio equipment

    By Ayai Tomisawa
    TOKYO, Sept 17 (Reuters) - Japan's Nikkei share average
edged up early on Wednesday after U.S. shares rebounded on
expectations the Federal Reserve will keep rates low after its
two-day policy meeting ends later in the day.
    The Nikkei share average rose 0.1 percent to
15,925.68 in mid-morning trade, after shedding 0.2 percent the
previous day.
    On Tuesday, participants cited a report in the Wall Street
Journal as indicating the Fed could be less hawkish than markets
have been expecting, as investors try to divine when the central
bank will hike interest rates. 
    Analysts said that the Japanese market is staying
directionless as investors try to guess the impact of the
outcome of the Fed's policy meeting.
    "The bottom line is that the market welcomes a rise in U.S.
interest rates in the long term helped by the dollar's gain
against the yen and the U.S. economic recovery," said Fumio
Matsumoto, a fund manager at Dalton Capital. "But investors have
yet to evaluate the short-term implication, so they are staying
on the sidelines."
    Exporters were mixed after the dollar slid to a low of
106.81, pulling further away from a six-year peak of
107.39 set last Friday.
    A weak yen lifts Japanese exporters' competitiveness abroad
and their profits when repatriated.
    Toyota Motor Corp gained 0.2 percent, Honda Motor
Co weakened 0.7 percent and Panasonic Corp 
fell 0.1 percent.
    Bucking the weakness, Pioneer Corp jumped 2.2
percent after it said it will sell its disc-jockeying audio
equipment unit to private equity firm KKR & Co LP for
around 59 billion yen ($550 million). 
    The broader Topix shed 0.1 percent to 1,310.13, and
the JPX-Nikkei Index 400 was flat at 11,869.98.

 (Editing by Jacqueline Wong)
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