Nikkei up 0.6 pct, Kyocera, exporters up on US, yen

By Staff
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TOKYO, June 15 (Reuters) Auto shares and high-tech exporters such as Kyocera Corp. helped push the Nikkei average up 0.61 percent on Friday, following a rise in U.S. stocks and a weakening of the yen.

Share of metal companies such as Sumitomo Metal Mining Co.

Ltd. climbed after some bullish brokerage comments on the sector and expectations that commodity prices will improve, said Hiroaki Kuramochi, a managing director at Bear Stearns.

''Exporters are standing out in today's market, boosted by a softer yen, while European and American money are going into steel and metal stocks,'' Kuramochi said.

''It might be possible that the Nikkei has hit its highest for the day, though, as it's moving in a small range ahead of the central bank governor's comments. There's also the weekend.'' Bank of Japan Governor Toshihiko Fukui will hold a news conference in the afternoon once the central bank wraps up a two-day policy meeting. The bank is widely expected to keep interest rates unchanged at this meeting, but people will be listening to Fukui for any hints on future rate hikes.

The Nikkei was up 108.47 points at 17,950.76 as of 0113 GMT, after reaching 17,957.98 earlier.

The broader TOPIX index added 0.49 percent to 1,765.23.

The dollar held near a 4 1/2-year high, hovering around 123.00 yen in early Asian trade.

A weaker yen is a boon to companies that make the bulk of their sales abroad because it boosts profits when earnings from overseas are brought home.

Exporters rose, with Kyocera up 1.6 percent at 12,670 yen and Honda Motor Co. Ltd. adding 1.4 percent to 4,330 yen.

Shares of Sumitomo Metal rose 1.7 percent to 2,690 yen, while Dowa Mining Co. Ltd. advanced 1.8 percent to 1,259 yen.

Elsewhere, Isuzu Motors Ltd. jumped 3.7 percent to 652 yen after the Nikkei business daily reported Toyota Motor Corp., Japan's largest auto maker, will outsource production of diesel engines to the truck maker.

Toyota climbed 1.2 percent to 7,660 yen.

Reuters DKS VP0730

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