Nikkei share average up

TOKYO, May 2: The Nikkei share average was up 0.84 percent on Wednesday as air-conditioner maker Daikin Industries Ltd. rose on earnings hopes while a positive outlook by Promise Co. Ltd. helped other consumer lending firms.

Sony Corp and other exporters rose as the dollar extended gains against the yen, rising above 120 yen for the first time in two months.

''The soft yen is encouraging investors to buy stocks,'' said Nagayuki Yamagishi, strategist at Mitsubishi UFJ Securities Co.Ltd.

The Nikkei rose 144.91 points to 17,419.89 at 0412 GMT, while the broad TOPIX index added 0.66 percent to 1,704.42.

Trade was relatively thin with many participants away for Japan's ''Golden Week'' spring holidays, making stock prices sensitive to moves in the futures market. Japanese markets were closed on Monday for a national holiday and will also be closed on Thursday and Friday.

Yamagishi of Mitsubishi UFJ Securities Co. said investors have studied earnings numbers and may be ready to buy stocks now.

So far, 279 non-financial firms listed on the first section of the Tokyo Stock Exchange have announced their earnings. They expect an average of 8.2 percent rise in net profit for the year to March 2008, according to Shinko Research Institute Co. Ltd.

''This means that stock prices have that much upside potential,'' Yamagishi said.

Shares of Daikin jumped 6 percent to 4,230 yen. The company's operating profit will likely jump 25 percent to a record high this business year due to strong demand for air conditioners in Europe and Asia, the Nikkei business daily reported on Wednesday.

Promise, a consumer finance company, jumped 5.7 percent to 3,880 yen as it forecast a return to profit this business year after losing roughly $3.2 billion amid a crackdown on the industry by lawmakers and the courts.

The positive outlook encouraged investors to pick up shares of other consumer lenders with Acom Co. Ltd. up 2.8 percent and Aiful Corp. jumping 4.9 percent.

Meanwhile, the softer yen boosted exporters. Sony rose 1.3 percent to 6,400 yen, recouping its earlier losses.

Kyocera Corp added 2 percent to 11,780 yen.

REUTERS