Nikkei hits four-month closing high, exporters rise

By Elaine Lies

TOKYO (Reuters) - Japan's Nikkei stock average rose 1.2 percent on Wednesday to a four-month closing high as industrial robot maker Fanuc Ltd (6954.T: Quote, Profile, Research, Stock Buzz) and other exporters gained on a weaker yen, though banks dragged on the market after pessimistic comments by U.S. Federal Reserve Chairman Ben Bernanke.

Pioneer Corp (6773.T: Quote, Profile, Research, Stock Buzz) plunged 17.5 percent, its biggest daily drop in more than 20 years, after the consumer electronics maker predicted a surprise fifth year of losses.

But the market also got a boost from Toho Zinc Co Ltd (5707.T: Quote, Profile, Research, Stock Buzz) and other zinc-related companies as zinc prices soared after a research group said the earthquake in China's Sichuan province has put up to half a million tonnes of zinc smelting capacity out of action.

Bernanke said on Tuesday that the credit crisis was not over, even as his colleagues revealed growing concerns about inflation that could signal a pause in a run of interest rate cuts.

"The market mood had finally been starting to improve in regard to the financial sector, but Bernanke's comments sort of dashed cold water on that," said Takashi Ushio, head of the investment strategy division at Marusan Securities.

Shares spent much of the day trapped in a narrow range and searching for direction, with many investors sidelined.

What direction there was came more from individual shares than sectors as Japan's earnings season moved into its final stages, with Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) announcing a surprise quarterly operating loss just after the close.

"Inflation fears have been prompted by high oil prices, and some people are also waiting to see what the economic impact of the Chinese earthquake might be," said Yumi Nishimura, a manager at the investment advisory section of Daiwa Securities SMBC.