Nikkei up 1.2 pct, Sony jumps on strong outlook

(Updates to midmorning)

TOKYO, May 15 (Reuters) - Japan's Nikkei share average rose 1.2 percent on Thursday, extending its gains to a fourth day as Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) jumped 9 percent on its bigger-than-expected outlook.

Exporters such as Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) also climbed on a softer yen.

"With the dollar regaining the 105 yen level, there are expectations for earnings improvement as many companies assumed 100 yen in their outlook," said Norio Shimura, deputy head of equity department at Chuo Securities.

"Sony's outlook gave a sense of reassurance to the market," he added.

The market also got a boost from steel shares such as Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) on a media report that they had reached a broad agreement with Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) to raise steel prices by more than 30 percent. [ID:nT298869]

As of 0118 GMT, the benchmark Nikkei average .N225 was up 169.43 points to 14,287.98. The broader TOPIX index gained 1.7 percent to 1,396.63.

Sony rose 9.3 percent to 5,300 yen, the biggest contributor to the Nikkei.

Nomura Securities lifted its rating on Sony to "strong buy" from "buy" following the company's results and forecasts. [nTKF003152]