Nikkei rises as Sony, some exporters gain

TOKYO, May 21 (Reuters) Japan's Nikkei share average rose 0.50 per cent today, as shares of Sony Corp. and other exporters were boosted after the yen hit a record low against the euro.

Broader gains were limited, however, as investors looked ahead to the start of stock trading in Shanghai later in the morning. Investors, particularly short-term traders, want to see how Chinese stocks perform after the central bank raised interest rates on Friday, analysts said.

''In terms of positive factors, the only thing right now is really the yen,'' said Masayoshi Okamoto, head of dealing at Jujiya Securities.

China was also a factor for some investors, Okamoto said.

''For day traders and other short-term investors, Shanghai stocks are a worry.'' The Nikkei was up 86.89 points at 17,486.47 as of 0626 IST.

The TOPIX index was up 0.45 per cent at 1,703.39.

The yen hit a record low of 163.91 against the euro today, boosting expectations of higher earnings for companies that do business in Europe.

Sony rose 2.3 per cent to 6,820 yen. The electronics company makes more than 70 per cent of its sales outside Japan.

Mitsui OSK climbed 4 per cent to 1,600 yen after Nomura Securities restarted coverage of the shipping sector and gave the company a ''1'' rating.

Rival Kawasaki Kisen Kaisha Ltd jumped 5.4 per cent after receiving a ''3'' rating and Nippon Yusen KK gained 2.6 per cent to 1,081 yen after receiving a ''2'' rating.

Reuters KK VP0715