Nikkei rises 0.4 pct as Chugai, Daiwa gain

                                
 * Chugai extends gains, expectations of brisk flu drug sales
                                
 * Daiwa Securities advances on report of firmer tie with SMFG
                                
 * Kyocera gains but Sharp drops after earnings
                                
 * Trade light on flu worry, ahead of market holidays in Japan
                                
 By Aiko Hayashi
                                
 TOKYO, April 28 (Reuters) - The Nikkei average rose 0.4
percent on Tuesday, as Chugai Pharmaceutical <4519.T> climbed on
expectations of strong sales of the Tamiflu flu drug, while Daiwa
Securities <8601.T> gained on a report of stronger ties with
Sumitomo Mitsui Financial Group <8316.T>.
                                
 Kyocera Corp <6971.T> advanced after the electronics parts
maker forecast operating profit to be flat this financial year
compared to some analysts' expectations of a loss.
                                
 "Overall, earnings by manufacturers have provided very few
surprises and investors are digesting them calmly," said Tsuyoshi
Segawa, equity strategist at Shinko Securities.
                                
 "But active trade is limited as the market is trying to grasp
how much swine flu could impact the global economy. We had
finally begun to see a bottom for the global economy and that has
been now ruined by pigs."
                                
 The benchmark Nikkei <.N225> added 38.51 points to 8,764.85,
after ending up 0.2 percent the previous day.
                                
 The broader Topix <.TOPIX> inched up 0.1 percent to 834.09.
                                
 After Monday's closing bell, S&P 500 stock futures <SPc1>
added to losses in after-hours trading as a flu expert from the
World Health Organization confirmed the pandemic alert level had
been raised to Phase 4 from Phase 3. [ID:nN27484099]
                                
 Analysts said investors also held back ahead of market
holidays. Japanese markets will be closed on Wednesday and May
4-6 for national holidays.
                                
 CHUGAI, DAIWA CLIMB
                                
 Stocks linked to flu businesses continued to draw attention.
                                
 Chugai Pharmaceutical, which distributes flu drug Tamiflu
through its partnership with developer Roche <ROG.VX>, extended
Monday's gains and shot up 4.3 percent to 1,925 yen.
                                
 Fujibo Holdings <3104.T> which makes medical masks, surged
18.9 percent to 107 yen.
                                
 Daiwa shares gained 2.5 percent to 498 yen after the Yomiuri
newspaper said the brokerage and Sumitomo Mitsui Financial Group
will start talks to strengthen ties, a move that could lead to a
major power shift in Japan's financial industry. [ID:nT63306]
                                
 Daiwa is set to report results after the close on Tuesday.
                                
 SMFG added 1.3 percent to 3,210 yen.
                                
 Shares of Kyocera gained 1.9 percent to 7,340 yen after
forecasting a 44 billion yen operating profit in the year to
March 2010, compared to a 12.7 billion yen loss projected by two
analysts polled by Thomson Reuters.
                                
 But Sharp Corp <6753.T>, the world's No. 3 LCD TV maker, sank
6.3 percent to 1,036 yen after the company reported its second
straight quarterly loss on Monday, hit by weak TV demand, price
falls and restructuring costs. [ID:nT322094]
                                
 Sharp's stock was the top drag on the Nikkei 225.
                                
 Some 1 billion shares changed hands on the Tokyo exchange's
first section, compared with last week's morning average of 1.2
billion.
                                
 Advancing stock and declining ones were almost evenly
matched, 755 to 763.
  (Editing by Edwina Gibbs)