Nikkei up 0.9 pct; Canon,exporters rise US stocks

Tokyo, June 18: Gains in a wide range of stocks helped the Nikkei average climb 0.91 per cent on Monday, with high-tech shares such as Canon Inc. moving up following a rise in U.S. stocks and a weakening of the yen.

Kawasaki Heavy Industries Ltd. gained nearly 3 per cent after the Nikkei business daily said Japan's second-largest machinery maker planned to invest about 20 billion yen (2 million) to build a second plant in Japan to make components for Boeing Co.'s 787 Dreamliner.

''Investors are buying exporters on expectations that a recovery in U.S. production activity would eventually benefit Japanese makers, especially exporters,'' said Tsuyoshi Segawa, equity strategist at Shinko Securities.

The Nikkei was up 164.35 points at 18,135.84 as of 0123 GM.

The broader TOPIX index added 0.67 per cent to 1,784.82.

U.S. retail sales in May rose at the strongest pace since January 2006, while import prices surged, adding to recent data suggesting the U.S. economy is recovering strongly from a first-quarter slowdown.

Segawa also said the market will be paying close attention to a string of shareholder meetings that start this week.

''The main focus of shareholder meetings this year will be corporate defence measures against takeover bids, and companies' decisions on that would be big trade material in the market,'' Segawa said.

Japanese companies set to hold shareholder meetings this week include Nissan Motor Co. and Sony Corp.

The dollar was steady g delivery system that enhances the efficacy of cancer treatment by delivering medication only to cancer cells.

Shares of Kawasaki Heavy were up 2.7 per cent at 503 yen.

Reuters>