Nikkei up 1.3 pct as Sony, exporters gain after Intel

(Updates to midmorning)

TOKYO, April 16 (Reuters) - Japan's Nikkei stock average rose 1.3 percent on Wednesday, boosted by high-tech exporters such as Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) on optimism about their profitability after Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) affirmed its profit-margin target for 2008.

Financial shares, including top lender Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz), picked up steam after stronger-than-expected quarterly results at several U.S. regional banks boosted shares of financial companies there.

JVC (6792.T: Quote, Profile, Research, Stock Buzz) shot up more than 6 percent after the Nikkei business daily said the firm plans to end domestic production and sales of flat-panel televisions, succumbing to fierce competition, and will instead focus on North America and Europe. [ID:nT239706]

"Investors are returning to Japanese high-tech companies as Intel's earnings indicated that industry-wide demand for semiconductors for PCs hasn't dropped despite the worsening economic outlook," said Kazuhiro Takahashi, a general manager of the equity marketing department at Daiwa Securities SMBC.

Intel on Tuesday affirmed its profit-margin target for 2008, reassuring investors worried about falling memory chip prices and the impact of a weak U.S. economy, sending its stock up 8 percent. [ID:nN15200824]

"I expect gains to be limited as the market awaits a series of earnings overnight, though the Nikkei could reach the 13,300 level if other Asian markets move higher in the afternoon," said Takahashi.

The benchmark Nikkei average .N225 added 165.38 points to 13,155.96 as of 0033 GMT after ending up 0.6 percent on Tuesday.

The broader TOPIX index gained 1.1 percent or 14.24 points to 1,270.21.