Nikkei up 0.6 pct, exporters gain on softer yen
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TOKYO, May 13 (Reuters) - Japan's Nikkei share average rose 0.6 percent on Tuesday, tracking overnight gains on Wall Street, led by exporters such as Canon Inc (7751.T) on a softer yen.
The market also got a lift from Nikon Corp (7731.T) after the precision equipment maker said that its annual profit rose 32.5 percent thanks to sales of advanced cameras and chip-making equipment and that it planned a share buyback. [ID:nT207717]
"Investors are buying up companies with good earnings," said Fumiyuki Nakanishi, group manager of the investment research department at SMBC Friend Securities.
Still, rises were limited despite hefty gains by index heavyweights, as investors locked in recent gains, with resistance for the Nikkei average seen at the five-day moving average around 13,800.
"The market is hung in the middle. We don't see strong market moving factors, either positive or negative," said Yoku Ihara, manager of the investment information department at Retela Crea Securities.
The benchmark Nikkei average .N225 ended the morning up 88.49 points at 13,831.85. The broader TOPIX index gained 0.7 percent to 1,352.01.
Nikon jumped 8.6 percent to 3,080 yen, the biggest contributor to the Nikkei.
FUJITSU SHINES
Fujitsu Ltd (6702.T) jumped 12.2 percent to 766 yen, the biggest percentage gainer on the Nikkei, after the electronics group said on Monday it forecast annual profit to more than double this year. [ID:nT31177]
After the earnings announcement, Mitsubishi UFJ Securities raised its rating on Fujitsu to "2" from "3", saying it believed Fujitsu could hit its targets.
Digital camera maker Canon rose 2.7 percent to 5,400 yen and Sony Corp (6758.T) gained 3.2 percent to 4,800 yen.
The dollar traded at 103.75 yen JPY=, down a bit from late New York trade but comfortably above Monday's trough below 103 yen.
Dentsu Inc (4324.T) soared 9.2 percent to 261,000 yen after Japan's top advertising agency said it would spend up to 60 billion yen ($578 million) to buy back nearly 11 percent of its own stock, saying its shares looked cheap after losing about one-fifth of their value so far this year. [ID:nT235656]
Earth-moving equipment makers Komatsu Ltd (6301.T) and Hitachi Construction Machinery Co Ltd (6305.T) rose sharply following a massive earthquake in China.
"There is speculation demand will increase for bulldozers and cranes in connection with reconstruction projects in China," SMBC Friend's Nakanishi said.
Komatsu rose 3.6 percent to 3,210 yen and Hitachi Construction climbed 3.7 percent to 3,370 yen.
Trade remained thin, with some 851 million shares changing hands compared to last week's morning average of 933 million.
Advancers and decliners were nearly even at 777 to 755.
($1=103.75 yen)
(Editing by Brent Kininmont)
