Nikkei up as investors bet on currency effect

TOKYO, Apr 27 (Reuters) The Nikkei average rose 0.40 percent on Friday as Honda Motor Co. Ltd. and Toyota Motor Corp. gained on expectations they will exceed their latest earnings forecasts due to the weaker yen.

Shares of Nintendo rose after the video game maker reported a sharp profit jump.

''Companies have largely released forecasts that have not taken into account the benefit of the currency,'' said Takahiko Murai, general manager of equities.

''So I think we are going to see some upward revisions come first-half earnings.

The Nikkei was up 69.73 points at 17,498.90 as of 0112 GMT.

The TOPIX was up 0.63 percent at 1,714.14.

Honda, Japan's second-largest auto maker, was up 2.2 percent at 4,150 yen as investors bet its currency assumptions were too conservative.

The company said earlier this week it has assumed an average rate of 115 yen to the dollar for the business year just started.

It also said it expects the euro to weaken to 150 yen.

The yen was at 119.68 to the dollar on Friday, and was at a record low against the euro at 162.80.

Toyota gained 1.7 percent to 7,360 yen.

Nintendo gained 1.8 percent to 37,850 yen. The video game maker posted a nearly eightfold rise in quarterly operating profit on vigorous sales of its DS handheld games and forecast stronger-than-expected growth this year.

Shares of Nikko Cordial Corp. rose 4.3 percent to 1,762 yen.

Citigroup cemented its biggest-ever Asian acquisition after a majority of shareholders in the Japanese brokerage accepted a buyout offer.

REUTERS DKS BST0720