(Updates to midday)
TOKYO, May 2 (Reuters) - Japan's Nikkei benchmark powered up
by 1.8 percent on Friday to its highest level in two months, with
banks and property firms such as Sumitomo Realty and Development
Co Ltd <8830.T> advancing after U.S. stocks rallied on the back
of growing investor confidence.
A stronger dollar helped exporters such as Canon Inc <7751.T>
rise. Canon gained additional upward impetus after it said it
would invest 60 billion yen ($575 million) in a new toner
cartridge plant in the United States to buffer the impact of
currency fluctuations and rising transport costs. []
"Sentiment about the U.S. economy is brightening a bit and
stocks appear to be rising on long-term hopes about this, even
though there is still some concern about the jobs data due out
later today," said Yumi Nishimura, manager at Daiwa Securities
SMBC.
"Some profit-taking is emerging above 14,000 but there's no
sense of significant selling."
But market players were wary and trade remained light ahead
of an extended Japanese holiday from the weekend, with markets
closed on Monday and Tuesday. They will reopen on May 7.
"There's been a history this year of big things happening in
overseas markets while Japan's been on vacation, and this is
making investors leery of taking out significant positions," said
Masayoshi Okamoto, head of dealing at Jujiya Securities.
"The rise today is mainly short-covering, with what buying
there is mainly from day traders. But if we can hang onto the
14,000 level for the Nikkei at the close, things look good for
next week."
The Nikkei <> gained 247.54 points to 14,014.40, its
highest level since Feb. 27. At one point it rose as high as
14,051.85, more than 2 percent.
The broader Topix <> was up 1.8 percent at 1,370.77
after also rising 2 percent.
PROPERTY POWERFUL, BANKS BOOSTED
Property surged, with Sumitomo Realty one of the top boosters
of the Nikkei 225 after the Nikkei business daily reported the
country's third-ranked property developer has likely beat its
2007/08 profit forecast, helped by brisk office leasing business.
The paper said Sumitomo Realty would likely post a 10 percent
gain in recurring profit to record 124 billion yen, against its
projection of 120 billion yen. Eleven analysts polled by Reuters
Estimates had a consensus forecast of 122.4 billion yen for the
year ended March.
Rival property firms Mitsui Fudosan <8801.T> and Mitsubishi
Estate <8802.T> also posted rises in quarterly profit on tight
supply of prime office space in Tokyo this week.
Sumitomo Realty climbed 7.2 percent to 2,685 yen, Mitsui
Fudosan by 4.3 percent to 2,695 yen and Mitsubishi Estate rose
4.7 percent to 3,000 yen.
The property subindex <.IRLTY.T> rose 4.8 percent, making it
the biggest gainer among the subindices.
Banks shed some of their earlier gains but still were firmer,
with Mizuho Financial Group <8411.T> up 4.1 percent at 534,000
yen and top lender Mitsubishi UFJ Financial Group <8306.T> up 2.7
percent at 1,131 yen. No. 3 bank Sumitomo Mitsui Financial Group
<8316.T> was up 3.8 percent at 904,000 yen.
The dollar's advance to the mid 104 yen level helped
exporters gain <JPY=>. A strong yen makes Japanese products less
competitive overseas and eats into profits when repatriated.
Canon rose 2.9 percent to 5,390 yen, while Honda Motor Co Ltd
<7267.T> gained 3.6 percent to 3,420 yen and Sony Corp <6758.T>
was up 3.1 percent at 4,930 yen.
The Nikkei business daily said on Friday that Sony's 2007/08
profit has likely jumped 5.3 times on strong sales of digital
cameras and computers, but it has likely missed the company's
forecast by about 30 billion yen ($287 million).
Trade slowed on the Tokyo exchange's first section, with 748
million shares changing hands, compared with last week's morning
average of 790 million.
Advancing stocks outnumbered decliners by nearly 5 to 1.
(Reporting by Elaine Lies;)
