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Nikkei up 1.5 pct after JPMorgan, U.S. retail data

Published 10/15/2009, 01:03 AM
Updated 10/15/2009, 01:06 AM
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* Nikkei breaks resistance near 10,140

* Nikkei rose over 2 pct at one stage

* Exporters, techs strong after Dow breaks above 10,000

By Elaine Lies TOKYO, Oct 15 (Reuters) - Japan's Nikkei stock average rose 1.5 percent on Thursday, bolstered by exporters and tech shares such as TDK Corp after robust U.S. company results and retail sales data boosted the Dow over 10,000 for the first time in a year.

But the market came off earlier intraday highs in afternoon trade as the impact of the much better-than-expected results from JPMorgan Chase & Co and economic data wore thin ahead of additional U.S. bank results on Thursday and Friday.

"There was some substantial selling of Nikkei futures around 10,300, and this has weighed on the cash market as well," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management. "This morning's energy may also have simply been the Nikkei playing catch-up to the gains made by other Asian markets yesterday." Others said investors remained less than enthusiastic about Japanese shares, despite U.S. retail sales data rising for the second month and offering cautious optimism that spending would support the global economy.

"There are signs that the market may not rise all that much more today, particularly since foreign investors didn't seem to be all that keen on Japanese shares in comparison to other Asian share markets yesterday," said Hideyuki Ishiguro, a supervisor at the investment advisory department of Okasan Securities.

"I think there's still some concern about earnings." The benchmark Nikkei rose 148.42 points to 10,210.29 but was off the day's high of 10,272.62 -- a rise of 2.1 percent -- marked at the close of the morning session. The broader Topix was up 1 percent at 903.30.

The Nikkei surged through resistance that had developed around 10,140 -- the level of its 25-day moving average -- and market players said one key focus of the day would be whether it manages to close above that level.

The Dow Jones Industrial average rose above 10,000 for the first time in a year, to 10,015.86 for a gain of 1.5 percent. Other U.S. indexes all rose more than 1 percent.

Exporters climbed, with Sony up 3.4 percent to 2,595 yen, Honda Motor Co gaining 1.6 percent to 2,805 yen and Toyota Motor Corp rising 1.4 percent to 3,620 yen.

Tech shares also advanced, with TDK Corp up 1.5 percent and industrial robot maker Fanuc up 2.2 percent at 7,750 yen. Chip equipment maker Tokyo Electron edged up 0.7 percent to 5,780 yen. Banks were up but pared gains, with top lender Mitsubishi UFJ Financial Group rising 1.2 percent to 491 yen and Sumitomo Mitsui Financial Group up a mere 0.6 percent to 3,290 yen.

Some in the market were doubtful about how long financial shares would continue to benefit from JPMorgan's results, saying that the prospect of a loan moratorium proposed by Banking Minister Shizuka Kamei still hung over the sector. (Reporting by Elaine Lies; Editing by Edwina Gibbs)

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