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) on optimism about their profitability after Intel Corp (INTC.O) affirmed its profit-margin target for 2008.
Financial shares, including top lender Mitsubishi UFJ Financial Group (8306.T), picked up steam after stronger-than-expected quarterly results at several U.S. regional banks boosted shares of financial companies there.
JVC 6792.T 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.
The rocky ride for the U.S. stock market is expected to continue this week, with earnings reports due from JPMorgan Chase (JPM.N), Merrill Lynch MER.N, Citigroup (C.N) and other large banks and financial services companies, as well as reams of economic data.
Japan's technology shares rose, with Sony up 2 percent at 4,130 yen and Canon Inc (7751.T) climbing 3.9 percent to 4,770 yen.
Advantest Corp (6857.T), the world's largest maker of microchip testers, gained 3.7 percent at 2,840 yen and Tokyo Electron Ltd (8035.T) jumped 5.3 percent to 6,310 yen.
Top lender Mitsubishi UFJ Financial Group (8306.T) rose 3.1 percent to 969 yen and No.2 Mizuho Financial Group (8411.T) added 3.3 percent to 440,000 yen. Sumitomo Mitsui Financial Group (8316.T), the third-biggest bank, gained 2.5 percent to 735,000 yen.
The U.S. regional banks' results contrasted with the unexpected loss posted Monday by Wachovia Corp WB.N, the nation's fourth-largest bank.
Shares of JVC jumped 6.3 percent to 220 yen. (Reporting by Aiko Hayashi; Editing by Brent Kininmont)
