* Nikkei rises 0.1 pct, Topix up 0.2 pct
* Weaker yen powers auto shares
* Investors lock in profits on recent gainers before weekend
By Tomo Uetake
TOKYO, Sept 20 The Nikkei average edged up to
hold around a two-month high on Friday morning, in part helped
by gains in automakers after the yen retreated against the
dollar as the U.S. Federal Reserve's surprise decision to keep
cheap money flowing wears off.
The benchmark Nikkei ended the morning session 0.1
percent higher at 14,778.75 after earlier hitting 14,816.65, its
highest level since July 23.
The index added to the 1.2 percent rise on Thursday, and is
up 2.6 percent for the week so far for a third straight week of
The broader Topix gained 0.2 percent to 1,218.23.
"This has been a very positive week for Japan and risk
assets in general. First, we had (Lawrence) Summers' exit the
race to head the Fed, and the surprise Fed decision not to taper
gave another boost for risk appetite," said Stefan Worrall,
director of equity cash sales at Credit Suisse in Tokyo.
Markets in China and South Korea were closed for the
mid-autumn holiday, while Japanese markets will shut for a
similar holiday on Monday.
The Fed's decision on Wednesday to delay a decision on
tapering its massive bond-buying stimulus sent the dollar
skidding broadly and triggered a global rally in riskier assets.
Investors have since paused to reflect on the Fed's policy
outlook, with upbeat U.S. data overnight underscoring
expectations that the stimulus cut will not be delayed for too
As a result, the dollar erased all of its Fed-induced losses
against the yen to last trade at 99.41 yen, well off
Wednesday's low of 97.76.
Exporters benefited from the yen's retreat, with Toyota
Motor Corp rising 0.8 percent to be the third-most
traded stock on the main board.
Rival Mitsubishi Motors Corp jumped 1.8 percent,
while Fuji Heavy Industries Ltd advanced 1.5 percent. A
weak yen strengthens exporters' competitiveness overseas and
bumps up their dollar earnings when repatriated.
"It's retail investors who are buying up shares today, but
this doesn't mean much as it's just before the long weekend and
many Asian markets are closed for holiday," Credit Suisse's
On the downside, recent gainers such as shippers,
constructors and warehouse operators succumbed to profit-taking
ahead of the long weekend. The sea transport sector subindex
shed 2.7 percent and was the worst sectoral
The Nikkei has surged 42 percent since the start of the
year, buoyed by the government's aggressive fiscal and monetary
stimulus aimed at pulling the world's third-largest economy out
of two decades of stagnation.