* Market boosted by weaker yen, US earnings hopes
* Mazda shoots up on hybrid parts tie-up report with Toyota
* Worries about U.S. CIT's fate weigh on U.S. futures, Nikkei
* China Q2 GDP quickens to 7.9 pct, supports market
By Aiko Hayashi
TOKYO, July 16 (Reuters) - Japan's Nikkei average climbed 2.2
percent on Thursday, boosted by shares of high-tech exporters on
a weaker yen and after results from Intel Corp <INTC.O> lifted
hopes for a rebound in technology spending.
Mazda Motor Corp <7261.T> surged nearly 9 percent after the
Nikkei business daily said Toyota Motor Corp <7203.T> plans to
supply Mazda with core components for hybrid vehicles.
[]
"In addition to hopes for a recovery in U.S. corporate
earnings, investors are welcoming growing signs of a recovery in
U.S. economic data," said Hiroaki Kuramochi, chief equity
marketing officer at Tokai Tokyo Securities.
U.S. manufacturing data released yesterday suggested the
recession is abating, and minutes from the Federal Reserve's most
recent policy-setting meeting showed officials judged that the
U.S. economy's contraction was slowing. []
In moderate trade, the benchmark Nikkei <> gained 205.79
points to 9,475.04 and the broader Topix <> advanced 2.3
percent to 885.98.
But a fall in U.S. stock futures <SPc1>, partly on deepening
troubles for U.S. firm CIT <CIT.N>, a major lender to small and
mid-sized businesses, put a lid on sharper gains for the Nikkei,
Kuramochi said.
A U.S. Treasury official said that the Treasury and other
federal agencies had explored several aid solutions to rescue CIT
Group from collapse, but that its liquidity situation had
deteriorated to the point where these became unworkable.
[]
"Investors took media reports about CIT negatively and that
weighed on U.S. futures, although its potential failure has been
somewhat factored in," Kuramochi said.
But a media report on China's growth figure ahead of the
official announcement provided support to the market, said Yumi
Nishimura, a deputy general manager at Daiwa Securities SMBC.
China's economy grew by 7.9 percent in the second quarter
from a year earlier, the Beijing Times newspaper said, citing an
unnamed official. The median forecast of economists polled by
Reuters is for second-quarter growth of 7.5 percent from a year
earlier. []
The National Bureau of Statistics (NBS) confirmed the 7.9
percent growth figure after the Tokyo market closed for the
midday break. []
EXPORTERS HIGHER
Among tech exporters, Canon Inc <7751.T> advanced 3.3 percent
to 3,130 yen and Advantest <6857.T> added 3.9 percent to 1,809
yen. Electronics components maker TDK Corp <6762.T> jumped 4.8
percent to 4,330 yen.
Shares of Japanese chip-related stocks such as Advantest had
made some modest gains on Wednesday in the wake of Intel's
results, but the Nikkei ended the day flat as investors grew
cautious ahead of more earnings results.
On Wednesday, the Standard & Poor's 500 Index <.SPX> gained 3
percent. Intel's quarterly results and outlook blew past Wall
Street forecasts on better-than-expected consumer demand for PCs,
especially in Asia. []
Shares of Mazda surged 8.9 percent to 246 yen, while Toyota
rose 2.9 percent to 3,570 yen.
The Nikkei said the components will be used in a hybrid
vehicle Mazda is planning to launch as early as 2013.
In early Asia trade, the dollar was trading around 94.30 yen
<JPY=>, up 0.1 percent. [] Investors welcome a weaker yen as
it boosts exporters' profits when they are repatriated.
Shares of Sumitomo Electric Industries <5802.T> gained 8.4
percent to 1,070 yen after the Nikkei business daily reported the
producer of electric wires and cables has developed the world's
first semiconductor laser that generates green light on its own
without having to convert light to green from another colour.
Some 1.1 billion shares changed hands on the Tokyo exchange's
first section, roughly in line with last week's morning average.
Advancing stocks outnumbered declining ones by 9 to 1.
(Editing by Joseph Radford)
