* Turkey's move raises hopes of turnaround in emerging
* Buying driven by short-term players, investors look to Fed
* Advantest hits near 4-month low on outlook cut
By Hideyuki Sano
TOKYO, Jan 29 Japan's Nikkei average jumped
almost 2 percent on Wednesday morning after four days of losses
as Turkey's huge hike in interest rates halted selling in
emerging markets and bolstered risk appetite.
But shares of Advantest plunged to a near
four-month low after the company slashed its full-year guidance,
underscoring the risk of more disappointment as many Japanese
companies report earnings over the next few weeks.
The Nikkei was up 1.7 percent at 15,236.62 in
midmorning trade, moving away from a 2-1/2 month low just below
15,000 set on Monday. It was still down more than 6 percent so
far this year, underperforming many of its regional peers.
"This is just an unwinding of risk-off trades. But the
rebound is not that strong and it is unlikely to be
sustainable," said Yasuo Sakuma, portfolio manager at Bayview
"Looking at earnings so far, I can say that expectations had
been higher (than the actual results). I doubt there will be any
boost from earnings."
Canon, Komatsu, Nintendo and
Sumitomo Mitsui Financial Group are due to report
earnings after the close on Wednesday.
Traders said buying was driven by short covering by
short-term players, while many investors remained cautious ahead
of the U.S. Federal Reserve's meeting at which it is widely
expected to trim its asset-buying programme by another $10
billion a month.
"You cannot completely ignore the possibility that the Fed's
decision could shake emerging markets again. So investors will
be on the sidelines until the Fed's announcement," said Soichiro
Monji, chief strategist at Daiwa SB Investments.
"But I also think the market has priced in a $10 billion
reduction in quantitative easing and that market sentiment will
improve after the Fed's decision," he added.
Like other share markets, the Nikkei had been under pressure
in the past week on worries that a reduction in U.S. monetary
stimulus and a slowdown in Chinese growth could hurt many
Turkey's bold move to raise overnight rates by 425 basis
points - and other rates by an even bigger amount - boosted the
Turkish lira and raised hopes for stabilisation in many other
The broader Topix index rose 1.9 percent, led by
shares of financials, utilities and paper companies.
Shares of Advantest, the world's largest maker of chip
testing equipment, fell as much as 10 percent to their lowest
since Oct. 9, after it widened its annual net loss forecast by
14 times due to weak demand for testers of chips used in
Nippon Electric Glass fell 2.4 percent and Asahi
Glass also underperformed the overall market, staying
almost flat, after U.S. rival Corning Inc warned that
prices of LCD glass would decline further in the current