Japanese stocks rebound, exporters up on dollar
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TOKYO, Jan 17 (Reuters) - Japan's benchmark Nikkei average rose for the first time in five sessions on Thursday, with exporters such as Honda Motor Co Ltd (7267.T) gaining after the dollar recovered ground against the yen.
But the day's upswing is largely seen as a technical rebound, and the market may lose its gains depending on currency moves.
"It's still fragile. We need more time to see the market on a firm recovery path," said Zenshiro Mizuno, senior managing director at Marusan Securities.
Honda Motor gained 3.2 percent to 3,200 yen and Toyota Motor Corp (7203.T) rose 1.9 percent to 5,410 yen
Industrial robot maker Fanuc Ltd (6954.T), the previous session's biggest drag on the market, became the second-biggest contributor to the Nikkei, gaining 5.2 percent to 8,730 yen.
Exporters had been among the hardest hit during the recent sell-off amid growing fears of a U.S. recession and due to the yen's sharp gains against the dollar.
The dollar, which hit a 2-1/2-year low of 105.92 yen JPY= on Wednesday, regained some ground as speculators trimmed short positions.
It was around 107.00 yen by midday on Thursday, with a dip below that level earlier leading some market participants to suggest exporters' shares may lose gains later in the day.
"The market may go down in the afternoon session if the yen advances against the dollar," Takahiko Murai, general manager of equities at Nozomi Securities.
The Nikkei .N225 ended the morning up 1.1 percent at 13,656.95 and the broader TOPIX index was up 0.9 percent at 1,314.50.
Technical charts suggested a rebound after the sell-off. Even after the morning bounce, the Nikkei's 14-day relative strength index still stood at about 21, well below the 30 "oversold" line, a fall below which usually indicates the market may be due for a near-term rebound.
Trade was active, with 1.18 billion shares changing hands compared to last week's morning average of 980 million.
Advancing shares outnumbered decliners nearly three to one.
DEFENSIVE SOLD Continued...
