Nikkei edges up as exporters recover, Aiful drops

TOKYO, May 17: The Nikkei average edged up 0.74 percent on Wednesday, after a six-day slide, as shares of exporters such as Canon Inc. recovered.

Shares of Aiful Corp. tumbled 12 percent after the consumer lender reported a drop in annual profit and forecast a further decline this year, as a shutdown by regulators earlier this month drove away customers.

The Nikkei's sustained decline had pushed shares of exporters and other firms down to attractive levels, said Hideyuki Suzuki, investment information manager at SBI Securities.

''I think yesterday's sell-off was overdone,'' he said.

''While there are concerns that profit growth will slow, there are still companies that putting out strong forecasts, for example some of the chip-related firms.... A market such as this is a good chance to buy such stocks.'' The Nikkei was up 119.04 points at 16,277.46 as of 0108 GMT.

The broader TOPIX index was up 0.44 percent at 1,652.14.

Canon rose 1.2 percent to 8,260 yen, snapping a two-day losing streak.

Aiful was down 10 percent at 6,120 yen. Japan's largest consumer lender reported a 13 percent drop in annual profit on Tuesday and forecast a further decline this year, as a temporary government shutdown of its business has driven away customers.

Japanese financial regulators ordered a three-day business suspension at all of Aiful's 1,700 outlets earlier this month as punishment for coercive debt collecting.

Chip-gear maker Tokyo Electron Ltd. gained 3 percent to 8,560 yen. Last week the company posted a nearly 16 percent increase in annual profit and forecast stronger-than-expected growth.

REUTERS