Nikkei up 2.1 pct as Fast Retailing gains on outlook

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By Aiko Hayashi

TOKYO, April 11 (Reuters) - Japan's Nikkei average rose 2.1 percent on Friday, boosted by shares of retailers such as Fast Retailing Co (9983.T: Quote, Profile, Research, Stock Buzz) on solid earnings expectations, while Astellas Pharma Inc (4503.T: Quote, Profile, Research, Stock Buzz) climbed after U.S. authorities approved its heart-imaging agent.

High-tech shares such as Advantest Corp (6857.T: Quote, Profile, Research, Stock Buzz) advanced after their U.S. peers lifted Wall Street on a brokerage upgrade of chip makers.

But Takeda Pharmaceutical Co Ltd (4502.T: Quote, Profile, Research, Stock Buzz) fell 2.8 percent to 5,260 yen, becoming the biggest drag on the Nikkei 225, after its $8.8 billion acquisition of U.S. biotech company Millennium Pharmaceuticals Inc MLNM.O in the biggest overseas buyout by a Japanese drug maker. [ID:nT182184]

"Blanket pessimism about Japanese corporate earnings is likely receding," said Masaru Hamasaki, a senior strategist at Toyota Asset Management.

"Investors had been extremely worried about U.S. corporate earnings and the impact of a stronger yen on exporters, but they might have started thinking retailers and other domestic-demand reliant shares could benefit from a stronger yen."

The benchmark Nikkei .N225 gained 272.98 points to end the morning session at 13,218.28, on course to end a three-day losing streak. The average fell 1.3 percent on Thursday to log its lowest close in more than a week.

The broader TOPIX index added 1.5 percent or 18.99 points to 1,267.06.