Nikkei rises as Matsushita, techs climb higher

TOKYO, Oct 13 (Reuters) The Nikkei average rose 1.05 percent on Friday as shares of Matsushita Electric Industrial Co Ltd. and other tech firms rose after better U.S. earnings results than expected eased concern about the outlook for the world's largest economy.

Shares of regional bank Kyushu-Shinwa Holdings Inc. jumped more than 11 percent after Bank of Fukuoka Ltd., another regional lender, said it would hold a news conference about a tie-up between them.

Investors were betting on technology companies and other exporters after earnings of U.S. consumer-oriented firms such as McDonald's Corp. beat expectations, bolstering confidence in a key market for Japanese goods, said Toshihiko Matsuno, assistant general manager of investment research at SMBC Friend Securities.

''Right now it appears that the U.S. economy is doing so poorly and that corporate earnings there are good. That's what the Japanese market is responding to now,'' Matsuno said.

The Nikkei was up 172.01 points at 16,540.82 as of 0106 GMT. The broad TOPIX index was up 1.18 percent at 1,632.71.

Matsushita, the maker of Panasonic goods, rose 2.7 percent to 2,630 yen.

Shares of MacDonald's and several other companies dependent on consumer demand posted earnings that topped estimates on Thursday, helping push the U.S. Dow to a record closing high.

Shares of Sony Corp. gained 3.5 percent to 4,750 yen after Morgan Stanley raised its rating on the electronics conglomerate to ''overweight'' from ''equal weight'' in a note to clients on Friday.

Shares of Kyushu-Shinwa Holdings jumped 11.4 percent to 157 yen after Bank of Fukuoka's announcement of a news conference on a tie-up.

Business daily Nihon Keizai reported on Friday that Kyushu-Shinwa would be acquired by Bank of Fukuoka, as the country's regional banks move towards greater consolidation.

Shares of Bank of Fukuoka were up 1.8 percent at 892 yen.

REUTERS DH PM0719