Nikkei tops 18,000, first time in nearly 7 years
(Updates to midmorning)
TOKYO, Feb 22 (Reuters) - The Nikkei average .N225 rose 0.97 percent to top 18,000 for the first time in nearly seven years on Thursday with exporters such as Advantest Corp. (6857.T) rising on a soft yen after the central bank raised interest rates but said further increases would be gradual.
The BOJ lifted its main interest rate by a quarter percentage point to 0.5 percent on Wednesday, the highest in more than a decade but still far below 5.25 percent in the United States and 3.5 percent in the euro zone.
Investors are likely to keep picking up shares of steel firms on expected industry consolidation and as they are seen still having room to rise, said Katsuhiko Kodama, a senior strategist at Toyo Securities.
"The Nikkei could aim for around 19,000 toward April, boosted by possible upward revisions of corporate earnings," he said.
In New York, the dollar rose nearly 0.8 percent against the yen on Wednesday to trade at 120.88 yen JPY= as the Japanese currency gave up almost all its gains of the past week.
The Nikkei was up 173.79 points at 18,087 as of 0042 GMT, its highest since May 2000. On Wednesday the technology-laced benchmark shed 0.14 percent to 17,913.21.
The broader TOPIX index rose 0.84 percent to 1,802.17 after earlier hitting its highest since November 1991.
Among blue-chip exporters, Advantest gained 1.3 percent to 5,660 yen and Canon Inc. (7751.T) added 1.4 percent to 6,560 yen.
A weaker yen is a boon to firms that make the bulk of sales abroad because it boosts profits when earnings are brought home.
TDK Corp. (6762.T) climbed 1.8 percent to 10,240 yen after the electronics parts maker said on Wednesday it would spend about $7 million to take a minority stake in parts maker Tabuchi Electric Co. Ltd. (6624.OS) to help expand its power unit business.
Shares of steel makers rose with Sumitomo Metal Industries Ltd. (5405.T) up 1.3 percent at 622 yen.
