Nikkei up 0.2 pc as exporters gain on softer yen

TOKYO, Dec 14: The Nikkei average rose 0.22 percent on Thursday as investors, encouraged by a better-than-expected U.S.

retail sales report and a weaker yen, bought stocks in exporters such as Sony Corp.

Investors also bought Nippon Mining Holdings Inc. after similar stocks rose in the United States following higher oil prices.

''Japanese stocks are getting a boost after the U.S. reported solid retail sales for November, which prompted investors to expect stronger Christmas sales,'' said Tsuyoshi Segawa, an equity strategist at Shinko Securities.

''Since strong retail sales tend to drive the dollar higher, today is going to be a great day for exporters.'' On Wednesday, the U.S. government reported November retail sales that exceeded Wall Street's forecasts, taking U.S. retail stocks higher.

The Nikkei was up 36.32 points at 16,729.25 as of 0112 GMT, while the broader TOPIX index rose 0.27 percent to 1,643.64. The benchmark ended the previous session up 0.33 percent at 16,692.93.

The yen was trading at 117.52 against the dollar.

The weak yen is a boon to companies that make the bulk of their sales abroad as it boosts profits when earnings from abroad are brought home.

Sony rose 1.4 percent to 4,950 yen, while Nippon Mining added 1.7 percent to 857 yen.

Isuzu Motors Ltd. was up 0.7 percent to 542 yen after its president said on Wednesday the Japanese truck maker was considering building a truck factory in North America as it focuses on growth overseas to make up for an expected stagnation in domestic demand.

Among stocks investors sold, Toshiba Corp. gave up 0.9 percent to 765 yen after the Japanese electronics conglomerate said on Thursday it will sell its stake in Toshiba-EMI Ltd to music group EMI Group Plc and book an extraordinary profit of 13 billion yen (0.6 million).

REUTERS