Nikkei up 0.7 pct as soft yen buoys exporters
(Updates to midmorning)
TOKYO, May 30 (Reuters) - The Nikkei stock average rose 0.7 percent and briefly touched a near two-week high on Friday, with exporters such as Sony Corp (6758.T) coming into favour on a softer yen and after U.S. stocks gained on receding worries about inflation and a recession.
Aderans Holdings Co Ltd (8170.T) shot up 12 percent to 2,275 yen, adding to the previous day's 8.8 percent rise, after U.S. hedge fund Steel Partners helped oust the president and most of the board of the wig maker, the first time management at a Japanese firm has been ejected under pressure from an activist fund. [ID:nT203406]
"The biggest factor for the rise is the softer yen, with bonds being almost flat, while another supporting factor is expectations for gains in U.S. stocks tonight after Dell's earnings," said Yutaka Miura, deputy manager of the equity information department at Shinko Securities.
Dell Inc (DELL.O), the No. 2 personal computer maker, reported earnings after the closing bell that beat Wall Street's expectations. [ID:nN29371124]
As of 0103 GMT, the benchmark Nikkei average .N225 added 97.99 points to 14,222.46 after hitting its highest point since May 19. It rose 3 percent the previous day.
Japanese annual inflation dipped to 0.9 percent in April from a year earlier, below expectations, while industrial output fell 0.3 percent in April from a month earlier, matching the median market forecast, data showed before the market opened.
"The economic data before the open were within expectations, but indicated a slowdown trend in the economy," Miura said.
The broader Topix index climbed 1.0 percent to 1,394.38.
The dollar rose 0.1 percent from late Thursday U.S. trade to 105.62 yen JPY=, hovering near a three-month high struck Thursday.
Investors had fretted over a stronger yen as it dents exporters' overseas profits when they are brought back home.
Sony gained 2.8 percent to 5,220 yen, and Toyota Motor Corp (7203.T) added 1.7 percent to 5,280 yen. (Reporting by Aiko Hayashi; Editing by Hugh Lawson)
