* Exporters lead the way as yen weakens
* Dentsu jumps on forecast hike
* Contractors weak on poor earnings concern
* China policy meeting in focus but limited impact on market
By Ayai Tomisawa
TOKYO, Nov 12 Japanese stocks sped to a near
two-week high on Tuesday morning, as exporters benefited from a
softer yen although contractors sagged on worries about their
The benchmark Nikkei share average rose 1.6 percent
to 14,493.90 in mid-morning trade, comfortably trading above its
25-day moving average of 14,329.52 and the highest level since
Exporters were higher, with Sony Corp rising 2.7
percent, Nissan Motor Co climbing 1.3 percent and
Panasonic Corp adding 1.0 percent.
The Topix rose 1.1 percent to 1,198.28, with all of
its 33 subsectors are in positive territory.
The dollar was trading at 99.52 against the yen, the
highest mark since Sept. 20.
A weaker yen sharpens exporters' competitiveness overseas
and bumps up their dollar earnings when repatriated.
"As long as the yen's weakness is steady, exporters are in
favor, but the market's gains are likely to be contained within
a 14,000-14,500 range this week," said Hikaru Sato, a senior
technical analyst at Daiwa Securities.
He said the persistent speculation over when the U.S.
Federal Reserve may start winding down its $85 billion-a-month
bond-buying programme is likely to remain a key driver of the
Friday's data showing an unexpected surge in U.S. jobs
growth in October prompted markets to speculate of a possible
December start to stimulus-tapering.
Analysts said investors are also focusing on Tuesday's
Chinese Communist Party policy-meeting for China's economic
blueprint for the next decade.
"China has a big impact on the world's economy, so investors
are focused on it, but they are not expecting that there will be
a big surprise from the meeting," said Makoto Kikuchi, the chief
executive of Myojo Asset Management.
Other notable gainers include Dentsu Inc, which
rose 2.6 percent after the advertising agency lifted its
operating profit forecast for the year ending March to 65.6
billion yen from the previously forecast 58.5 billion yen.
Contractors were weak, with Obayashi Corp tumbling
4.1 percent, Kajima Corp falling 1.5 percent and
Shimizu Corp dropping 0.6 percent after the Nikkei
business daily reported that Obayashi's operating profit for the
April-Sept period fell short of market expectations.
The contractors will release their results in the afternoon.