Nikkei up on Kyocera, Sony falls before earnings

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By David Dolan

TOKYO, Jan 30 (Reuters) - The Nikkei share average rose 0.39 percent on Tuesday as Kyocera Corp. (6971.T) and some other technology firms gained ahead of their earnings results, while steel makers such as Nakayama Steel Works Ltd. (5408.T) advanced on expectations of industry consolidation.

But shares in Sony Corp. (6758.T) fell as investors unloaded the electronics and entertainment conglomerate before its earnings results, which are to be released after the close of trade.

"There are expectations (technology firms) will post good results," said Toru Otsuka, a deputy general manager of investment information at Mizuho Investors Securities.

"I think they will. There are a lot of companies that have estimated an exchange rate of 113 or 114 yen to the dollar. Given the recent weakness of the yen they are likely to benefit."

The Nikkei .N225 finished the morning up 68.25 points at 17,538.71.

The broad TOPIX index was up 0.44 percent at 1,741.14.

The yen was near a four-year low against the dollar at 121.65 yen to the U.S. currency.

A weak yen is a boon for technology firms and others that make the bulk of their sales abroad, because it boosts profits when earnings from overseas are brought home.

Kyocera, a maker of electronic components, climbed 2.1 percent to 11,240 yen. The company is due to report its results later on Tuesday.

Likewise, TDK Corp. (6762.T) edged up 0.4 percent at 10,160 yen. It is also due to report its results later in the day.

Electric-furnace steel maker Nakayama Steel Works jumped 10.8 percent to 501 yen. Nippon Steel Corp. (5401.T), the world's second-largest steel maker, said on Tuesday it is discussing deepening ties with Nakayama Steel.

The Nikkei business daily on Tuesday reported that Nippon Steel plans to raise its stake in Nakayama, becoming the top shareholder in the smaller firm.

SONY BUCKS TREND

Unlike some technology companies, Sony lost ground ahead of its earnings, shedding 1.9 percent to 5,620 yen.

"Investors shouldn't be expecting a lot (from Sony)," said Hiroyuki Nakai, chief strategist at Tokai Tokyo Securities.

"If the earnings come out incredibly strong -- and I don't think they will -- that is another matter, but any expectations are likely factored in by the stock's rise over the past month."

Sony has risen more than 12 percent over the past month, making it one of the top 20 performers in the Nikkei 225 during the same period.

Investors largely shrugged off some mixed economic data released before the start of trade.

Japan's industrial output rose more than expected in December from a month earlier, data showed, underscoring views that corporate activity remains firm.

However, separate data showed household spending fell more than expected and the jobless rate rose slightly during the same month.

Trade remained active, with 1.08 billion shares changing hands on the Tokyo exchange's first section, little changed from last week's morning average.

Advancers outnumbered decliners by nearly two to one.