Nikkei up 0.3 pc as exporters gain on softer Yen

Tokyo, Apr 20: The Nikkei average rebounded on Friday after Asian shares slid in the previous session on fears of an interest rate hike in China, with exporters such as Advantest Corp. rising on a softening yen and following relatively calm reactions from major overseas markets.

Shares in Tokyo Broadcasting System Inc. first traded up 13 percent at 4,340 yen after Japanese Internet company Rakuten Inc.

said it wanted to lift its stake to more than 20 percent, prompting the broadcaster to threaten the use of its ''poison pill'' defence.

China's economy grew at a blistering 11.1 percent annual pace in the first quarter, data showed on Thursday, fuelling speculation that interest rates would need to rise again soon.

''The main focus of the market was how the U.S. stocks did after a drop in Asian stocks,'' said Hiroaki Kuramochi, managing director at Bear Stearns.

''Investors are encouraged that the Dow booked a gain and other markets didn't become stormy. A softer yen is also helping.'' The Nikkei was up 0.33 percent, or 58.01 points, at 17,429.98 as of 0045 GMT, while the TOPIX shed 0.09 percent to 1,705.40.

The Nikkei slid 1.67 percent to 17,371.97 on Thursday, booking its biggest one-day loss in a month, as market sentiment turned sour after the Shanghai Composite Index dropped more than 3 percent on the view that strong Chinese economic data could spark turbulence.

In late afternoon trading in New York, the dollar recovered from lows of 117.62 yen to trade at 118.45 yen A weaker yen is a boon to companies that make the bulk of their sales abroad because it boosts profits when earnings from abroad are brought home.

Exporters regained ground with Advantest up 1.1 percent at 5,570 yen and Kyocera Corp. adding 1.1 percent to 11,540 yen.

Canon Inc., the world's top camera and copier maker, also rose 1.4 percent to 6,600 yen after the Nikkei business daily said the company is likely to report a 14 percent increase in net income for 2007 on robust sales of core products.

On Thursday, U.S. stocks ended nearly flat with the Dow Jones industrial average up 0.04 percent to close at a record 12,808.63, while the Nasdaq Composite Index shed 0.21 percent.

The pan-European FTSEurofirst 300 index lost 0.3 percent and Britain's FTSE 100 index shed 0.1 percent.

Reuters