* Exporters rise after good U.S. GDP data lifts Wall Street
* Gains may be capped by profit-taking ahead of weekend
* Nintendo falls after profit slide, forecast cut
By Elaine Lies
TOKYO, Oct 30 (Reuters) - Japan's Nikkei stock average rose
1.3 percent on Friday as exporters climbed on data showing the
U.S. economy had returned to growth, while Japan Airlines
<9205.T> gained after it turned to the government for a bailout.
But Nintendo Co Ltd <7974.OS> fell 4.5 percent after it
reported a 52 percent slide in quarterly profit and slashed its
full-year forecast as the Wii console loses its title as the
videogame platform to beat. []
U.S. gross domestic product showed the economy expanded at an
annual rate of 3.5 percent in the third quarter, the first
quarter of growth after more than a year of contraction, sending
Wall Street broadly higher. []
Analysts cheered the gains, but warned the market was ripe
for profit-taking ahead of the weekend and that uncertainties
remained about the global economy after U.S. home sales data
earlier this week had raised doubts about the pace of recovery.
"It's hard to say if things have really changed, and there
are a lot of other indicators coming up next week," said Yutaka
Miura, senior technical analyst at Mizuho Securities.
"GDP data is relatively old, after all, and doesn't tell us
much about more recent growth. So we know the past was good, but
there are a lot of uncertainties still about the future."
The benchmark Nikkei <> rose 124.18 points to 10,015.28
after closing at a three-week low below 10,000 on Thursday, while
the broader Topix <> rose 1.1 percent to 891.70.
Analysts said that given Wall Street's gains, the Nikkei may
break above its 25-day moving average, now around 10,074, but t
the benchmark needed fresh incentives to do so.
Japan's earnings season peaks on Friday, with big names such
as Sony Corp <6758.T> and Panasonic <6752.T> due to announce
results after the close.
Investors were also likely to remain somewhat wary ahead of a
slew of U.S. events and economic indicators next week, including
a Federal Reserve meeting.
"The Nikkei's fall earlier this week have made prices
attractive for investors, but because today is the end of the
week as well as the end of the month, look for profit-taking at
the highs," said Hiroichi Nishi, general manager at the equity
division of Nikko Cordial Securities.
JAL GAINS, EARNINGS IMPACT
JAL rose 1.7 percent to 117 yen after it said on Thursday it
would apply for assistance from a state-backed corporate
turnaround body, setting the stage for a large injection of
public funds into the troubled airline.
The government has been scrambling to secure financing and
map out a restructuring plan for JAL, which is headed for its
fourth loss in five years, weighed down by $15 billion in debt
and crippling pension costs. [] []
Transport Minister Seiji Maehara said on Friday that the
government will set up a new team of ministry officials to work
on a JAL bailout, including bridging loans.
Earnings were also a big factor for individual shares.
Nintendo fell to 22,970 yen after it announced that its
second quarter profit was 64 billion yen compared to a consensus
forecast for 90 billion yen, reflecting cooling demand for its
family-friendly games as rivals Sony and Microsoft Corp <MSFT.O>
bolster their catalogue of games that appeal to die-hard players.
But Olympus Corp <7733.T> surged 8.7 percent to 2,885 yen
after the Nikkei business daily said the company is expected to
post a operating profit of 28 billion yen for the April-September
first half, beating the company's own forecast of 19 billion yen.
[]
Sharp Corp <6753.T> climbed 3.1 percent to 995 yen after
posting its first quarterly profit in a year as TV and screen
panel demand recovered, though a 15 percent fall in overall sales
and a cautious company outlook means strong earnings growth is
still elusive -- a problem that analysts said could plague other
firms as well. []
"We're seeing gains in profits, but without a rise in sales
even these good results lack long-term power as incentives," said
Kenichi Hirano at Tachibana Securities.
Among exporters, Sony rose 3.5 percent to 2,805 yen, Canon
Inc <7751.T> gained 2.3 percent to 3,550 yen and Toyota Motor
Corp <7203.T> rose 2.8 percent to 3,670 yen.
Trade was moderate on the Tokyo exchange's first section,
with 892 million shares changing hands, roughly in line with last
week's morning average.
Advancing stocks outnumbered declining ones by nearly 3 to
1.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
