(Adds stocks, details)
By Aiko Hayashi
TOKYO, June 16 (Reuters) - Japan's Nikkei stock average rose
1.5 percent on Monday, as exporters such as Kyocera Corp <6971.T>
climbed on a weaker yen and after U.S. data eased worries on Wall
Street about inflation and a near-term rise in interest rates.
Mitsubishi Motors Corp <7211.T> rose 2.5 percent to 206 yen
after the Nikkei business daily reported the Japanese automaker
will tie up with France's PSA Peugeot Citroen <PEUP.PA> in
electric vehicles, to supply technology and next-generation
batteries. []
But Nippon Oil <5001.T>, Inpex Holdings Inc <1605.T> and
other related shares fell after oil prices slipped on news Saudi
Arabia was preparing to boost output. []
"A softer yen sparked hopes for upward earnings revisions for
some exporters," said Takahiko Murai, general manager of equities
at Nozomi Securities.
"But we have to brace for an eventual dramatic slowdown in
Japan, where the stock market and the economy depend on overseas
demand, considering recent declines in Asian shares and rising
inflation worries in emerging countries."
Murai said that as long as the dollar stays strong, a sudden
and large drop in the market is unlikely, but the Nikkei average
will likely have a hard time holding above 14,000.
The benchmark Nikkei <> gained 205.89 points to end the
morning session at 14,179.62, after having lost 3.6 percent last
week.
The broader Topix <> climbed 1 percent to 1,384.61.
U.S. stocks closed higher on Friday, helped by a government
report that showed underlying price pressures rose only
moderately in May, benefitting technology shares that had been
beaten down in recent days on worries about rate increases and
weaker overseas sales. []
Market analysts said a rise in U.S. stocks on Friday could be
judged as a rebound and was not necessarily enough to keep
pushing the Japanese market higher.
Kenichi Hirano, operating officer at Tachibana Securities,
said investors were returning to stocks that had been oversold
last week, encouraged by a rise in U.S. shares, but gains were
stemmed by caution ahead of a torrent of earnings and economic
data due this week in the United States.
Major Wall Street investment banks Goldman Sachs <GS.N>,
Lehman Brothers <LEH.N> and Morgan Stanley <MS.N> are expected to
post poor results this week, with market sentiment hampered by
more write-downs and a sizeable loss at Lehman.
The Producer Price Index for May, due on Tuesday, tops the
U.S. data agenda, followed by May housing starts, industrial
production and a reading for the first-quarter current account.
EXPORTERS IN FAVOUR
Japan's exporters gained as the dollar fetched around 108.27
yen <JPY=>, holding near a four-month high. A softer yen boosts
exporters' overseas profits when they are brought back home.
Electronic parts maker Kyocera climbed 3 percent to 10,450
yen and Canon Inc <7751.T> added 2 percent to 5,550 yen.
Toyota Motor Corp <7203.T> rose 2 percent to 5,600 yen.
Some builders and other issues surged on speculation that
they would benefit from new business after a powerful earthquake
rocked rural areas of northern Japan. []
Tohoku Misawa Homes <1907.T>, a builder of prefabricated
homes based in the Tohoku region in northern Japan, soared 23.7
percent to 339 yen. Ueki Corp <1867.T>, a general contractor with
expertise in disaster-recovery related work jumped 20.6 percent
to 170 yen. Nissei Build Kogyo <1916.T>, another maker of
prefabricated homes, climbed 11.3 percent to 118 yen.
Shares of Nippon Oil, Japan's largest oil distributor, fell
2.3 percent to 719 yen while Inpex, the country's biggest oil and
gas explorer, slipped 3 percent to 1.29 million yen.
Trade was light on the Tokyo exchange's first section where
844 million shares changed hands, compared with last week's
morning average of 1.2 billion.
Advancing shares beat declining ones by a ratio of nearly 2
to 1.
(Editing by Brent Kininmont)
