July 1, 2011 / 2:38 AM / 8 years ago

Nikkei rises on receding worries on Greece, U.S. economy

 * Nikkei may stay near 200-day moving average -analysts
 * BOJ tankan impact limited -analysts
 By Ayai Tomisawa	
 TOKYO, July 1 (Reuters) - The Nikkei share average rose 0.5
percent on Friday, climbing above its closely watched 200-day
moving average, helped by positive U.S. economic data and relief
that Greece will avert imminent default.	
 Analysts said that the Bank of Japan's tankan survey of
corporate sentiment had a limited impact on the market, but
investors were relieved that recovery is expected in the coming
quarter.	
 The headline index measuring big manufacturers' sentiment
clocked in at a worse-than-expected minus 9 in June, but is
expected to improve to plus 2 over the next three months, the
survey showed just before the opening bell. 	
 "The market had been focusing on the outlook, so as long as
that is improving, I think we can say that the data is already
priced into the stock market," said Yumi Nishimura, a senior
market analyst at Daiwa Securities.	
 The survey also showed big firms plan to raise their capital
spending by 4.2 percent in the financial year to March 2012,
more than the market's median forecast for a 2.2 percent rise.	
 "Expectations for companies to increase their capital
spending will likely lift the market from July," Nishimura
added.	
 The benchmark Nikkei was up 0.5 percent at 9,862.85
at the midday break, after rising above its 200-day moving
average of 9,866.86. The broader Topix rose 0.4 percent
to 852.81.	
 Investors said the Nikkei is expected to stay near its
200-day moving average on Friday.	
 In the U.S., Midwest business activity showed surprising
strength this month, lifted by a jump in new orders, the
Institute for Supply Management-Chicago said. 	
 In Europe, Greece's parliament approved measures to
implement budget cuts and assets sales, making the country
eligible for financial aid to avoid a debt default.
 	
 Mitsubishi UFJ Financial Group rose 1.5
percent to 396 yen after the Nikkei business daily reported that
the bank raised its stake in Morgan Stanley to 22.4
percent by converting its preferred shares into common stock.	
 The deal will result in more than 200 billion yen ($2.48
billion) in profit in the April-June quarter for MUFG, the
Nikkei said. 	
 Condiment maker Kewpie rose 2.4 percent
to 1,047 yen, climbing back to pre-quake levels after the
manufacturer of mayonnaise and salad dressings said it would buy
up to 2 million of its own shares, equivalent to up to 1.3
percent of shares outstanding. It also said it would retire
about 2.46 million in treasury stock.	
 Noritz rose 5.8 percent to 1,563 yen
after hitting an intraday high of 1,577 yen, its highest in nine
months, after the manufacturer of water heaters revised its
operating profit forecast for the year to December to 10 billion
yen from 8 billion yen.	
	
 (Additional reporting by Hideyuki Sano; Editing by Joseph
Radford)	
 
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