Nikkei rises 1 pct to 4-month high as Sony jumps
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TOKYO, May 15 (Reuters) - Japan's Nikkei share average rose 1 percent to a four-month high on Thursday, with Sony Corp (6758.T) jumping 9 percent on its bigger-than-expected outlook.
Exporters such as Honda Motor Co Ltd (7267.T) also climbed on a softer yen against the dollar.
"With the dollar regaining the 105 yen level, there are expectations for earnings improvements as many companies assumed 100 yen in their outlook," said Norio Shimura, deputy head of equity department at Chuo Securities.
"Sony's outlook gave a sense of reassurance to the market," he added.
The market also got a boost from steel shares such as Nippon Steel Corp (5401.T) on a media report that they had reached a broad agreement with Toyota Motor Corp (7203.T) to raise steel prices by more than 30 percent. [ID:nT256343]
The benchmark Nikkei average .N225 ended the morning up 144.86 points at 14,263.41. The broader TOPIX index gained 1.6 percent to 1,394.26.
With the Nikkei gaining ground above 14,000, market participants said retail investors and other players who had been on the sidelines were likely to be compelled back to the market.
"Some people are worried about not buying Japanese stocks" as they fear they will miss an opportunity, said Fujio Ando, senior managing director of Chibagin Asset Management.
SONY SHINES
Sony shares went untraded for half an hour after the start of trade due to a flood of buy orders. The issue first changed hands at its daily limit-high, up more than 10 percent.
It ended the morning up 9.1 percent at 5,290 yen, the biggest contributor to the Nikkei.
Nomura Securities lifted its rating on Sony to "strong buy" from "buy" following the company's results and forecasts. [nTKF003152]
But some like Ando of Chibagin Asset Management said Sony's sharp gain was rather helped by improving market sentiment.
"Its results were below consensus, and if we take that into account, this year's projected profit growth is not that strong," he said. Continued...
