Nikkei up after output data, lower yen lifts Honda

TOKYO, Mar 30 (Reuters) The Nikkei average rose 0.49 on Friday as investors bought shares of Honda Motor Co. Ltd. after data showed industrial output was better than expected last month, and due to a decline in the yen.

Participants also said the market may have been lifted by year-end window dressing, where fund managers often purchase strong-performing stocks to improve the appearance of their portfolios.

''It's the data. The industrial output numbers before the start of trade were better than expected,'' said Ken Masuda senior dealer in equities at Shinko Securities.

The Nikkei was up 83.79 points at 17,347.73 as of 0104 GMT.

The broad TOPIX index was up 0.59 percent at 1,720.72.

The yen was hovering near 118 to the dollar during the morning session, after rising as high as 116.38 on Wednesday. A weaker yen is a boon for companies that make the bulk of their sales overseas, as it boosts profits when earnings are brought home.

Honda rose 2.5 percent to 4,170 yen.

Sony Corp. added 1.5 percent to 6,070 yen.

Japan's industrial production fell 0.2 per cent in February from a month earlier, smaller than a median market forecast of a 0.8 percent fall.

Shares of Mitsui Engineering&Shipbuilding Co. added 2.9 percent to 501 yen.

The Nikkei business daily said the company would likely post an 89 percent rise in group operating profit for the next business year on improved profitability in its core shipbuilding division.

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