Nikkei up 2.3 pct as exporters climb after U.S. earnings

(Adds comment, stocks, details)

By Aiko Hayashi

TOKYO, April 17 (Reuters) - Japan's Nikkei stock average rose 2.3 percent on Thursday as exporters such as Canon Inc (7751.T: Quote, Profile, Research, Stock Buzz) climbed after solid earnings from IBM (IBM.N: Quote, Profile, Research, Stock Buzz) and other U.S. companies reassured investors about corporate profitability amid a weak economy.

Top lender Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) and other banks climbed after results from JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz) heartened investors who had counted on the big banks to fare better than rivals in coping with the turmoil in the housing and credit markets. [ID:nN16378871]

"Some shares rose in tandem with earnings from their U.S. peers such as high-tech exporters, which got a boost from IBM's results," said Soichiro Monji, chief strategist of the equity management department at Daiwa SB Investments.

"Investors also feel encouraged to return to shares that had been oversold, such as banks and property firms, as U.S. earnings as a whole have been solid and their outlooks have been more bullish than expected."

The benchmark Nikkei average .N225 added 306.10 points to end the morning session at 13,452.23, poised to finish the day at its highest close since Feb. 29.

The broader TOPIX index climbed 2.2 percent or 27.97 points to 1,299.85.

International Business Machines Corp posted stronger-than-expected quarterly results on Wednesday and raised its 2008 outlook, boosting its shares 2.7 percent and sending an encouraging signal about technology earnings in the face of a weak U.S. economy. [ID:nN16208134]