(Adds stocks, details)
By Elaine Lies
TOKYO, Feb 14 (Reuters) - Japanese stocks jumped over 2
percent on Thursday to a one-week high on news that the economy
grew more than twice as much as expected in the final quarter of
2007, with strong U.S. retails sales data also providing a boost.
A weaker yen lifted Canon Inc <7751.T> and other exporters,
while chip-related shares gained after advances by their U.S.
peers and trading houses climbed as oil rose and platinum hit a
record high.
Japan's economy grew 0.9 percent in October-December from the
previous quarter against market expectations for a 0.4 percent
rise. Annualised growth was 3.7 percent, while capital spending
rose 2.9 percent from the previous quarter. []
The figures, out just before trade began, sent stocks up over
2 percent within minutes of the opening, with the Nikkei average
hitting its highest level in a week.
But market participants were wary, warning that the slew of
surprisingly positive numbers -- including unexpectedly strong
U.S. January retail data, which had turned sentiment positive
even before the opening -- were no guarantee that growth would
continue.
"I wish I could believe that these two sets of numbers really
did ease economic worries," said Takahiko Murai, general manager
of equities at Nozomi Securities.
"The fact that Japan's economy is powered by exports is a
fundamental concern. Since it exports to both the United States
and China, if U.S. growth slows and has an impact on China, it
gets hit by a double punch."
He said most of the gains appeared to be short-covering
rather than real buying.
U.S. government data showing higher retail sales in January
bucked expectations for a decline and took investors by surprise
since it followed an anaemic January jobs report [].
"This was a surprise, but you can't say it will prove that
everything's OK with the U.S. economy," said Ryuta Otsuka, a
general manager at Toyo Securities.
The benchmark Nikkei <> was up 2.8 percent at 13,433.04
by midsession after earlier climbing over 3 percent, hitting its
highest level since Feb. 5 and set for a third straight positive
session.
The broader TOPIX index <> was up 2.4 percent at
1,316.74.
HEALTHY HIGH TECH
Chip-makers and related firms were some of the Nikkei 225's
biggest boosters after their U.S. peers climbed on Wednesday,
with the Semiconductor Index <.SOXX> up more than 3 percent.
TDK Corp <6762.T> was the greatest contributor to the
Nikkei's rise by weight, up 6 percent at 7,830 yen. Advantest
Corp <6857.T> powered 8 percent higher to 2,280 yen.
Tokyo Electron <8035.T>, the second-largest contributor, was
up 4.8 percent at 6,810 yen.
Tokyo Electron will likely post an 18 percent rise in group
net profit to about 108 billion yen ($997.6 million) for the year
to March, better than its previous forecast for a 14 percent rise
thanks production cost cuts, the Nikkei business daily said on
Thursday.
Though the dollar fell back slightly against the yen, it
still was above 108 yen <JPY=> by late morning in Tokyo, keeping
exporters solid.
Canon was up 4.4 percent at 4,730 yen and Honda Motor Co
<7267.T> up 4.5 percent at 3,270 yen. Other exporters also fared
well, though they trimmed their gains slightly by midsession.
Trading house Marubeni Corp, <8002.T>, one of the top 5
general trading firms, jumped 4.8 percent to 750 yen and peer
Mitsubishi Corp <8058.T> was up 2.7 percent at 3,090 yen.
Trade was light, with 915 million shares changing hands,
compared with last week's morning average of 1.05 billion.
Advancing shares beat decliners by eight to one.
(Reporting by Elaine Lies, Editing by Michael Watson)
