(Adds comment, stocks, details)
By Aiko Hayashi
TOKYO, April 11 (Reuters) - Japan's Nikkei average rose 2.1
percent on Friday, boosted by shares of retailers such as Fast
Retailing Co <9983.T> on solid earnings expectations, while
Astellas Pharma Inc <4503.T> climbed after U.S. authorities
approved its heart-imaging agent.
High-tech shares such as Advantest Corp <6857.T> advanced
after their U.S. peers lifted Wall Street on a brokerage upgrade
of chip makers.
But Takeda Pharmaceutical Co Ltd <4502.T> fell 2.8 percent to
5,260 yen, becoming the biggest drag on the Nikkei 225, after its
$8.8 billion acquisition of U.S. biotech company Millennium
Pharmaceuticals Inc <MLNM.O> in the biggest overseas buyout by a
Japanese drug maker. []
"Blanket pessimism about Japanese corporate earnings is
likely receding," said Masaru Hamasaki, a senior strategist at
Toyota Asset Management.
"Investors had been extremely worried about U.S. corporate
earnings and the impact of a stronger yen on exporters, but they
might have started thinking retailers and other domestic-demand
reliant shares could benefit from a stronger yen."
The benchmark Nikkei <> gained 272.98 points to end the
morning session at 13,218.28, on course to end a three-day losing
streak. The average fell 1.3 percent on Thursday to log its
lowest close in more than a week.
The broader TOPIX index <> added 1.5 percent or 18.99
points to 1,267.06.
Still, equities trading manager Yusuke Sakai at Mizuho
Securities said investors will likely hold back ahead of the
Japanese corporate earnings season.
"Investors are becoming cautious as Japanese companies will
start announcing next week how they see their earnings prospects
for this year," he said.
After the morning close, Mizuho Financial Group Inc <8411.T>
said it expected 400 billion yen ($3.9 billion) of
subprime-related trading losses at its unlisted brokerage, Mizuho
Securities, for the year that ended in March. []
Mizuho was up 0.8 percent at 390,000 yen.
FAST RETAILING SHINES
Shares of Fast Retailing climbed 3.5 percent to 9,940 yen
after the retailer raised its full-year operating profit forecast
by 10 percent to 80.1 billion yen on the back of a recovery at
its Uniqlo casual-clothing chain.
Seven & I Holdings Co Ltd <3382.T> shot up 6.4 percent after
Japan's largest retailer said it would buy back and cancel up to
170 billion yen of its shares and Mitsubishi UFJ Securities
lifted its rating on the stock to "1" from "2" saying the shares
are cheap considering an expected improvement on return on
assets.
Seven & I posted its first drop in full-year operating profit
in six years, hit by weak consumer spending and tough
competition, but it forecast a recovery this year as it closes
unprofitable outlets. []
Astellas added 2.9 percent to 4,200 yen after it and
Therapeutics <CVTX.O> said the U.S. Food and Drug Administration
had approved their heart-imaging agent regadenoson, also called
Lexiscan. []
Technology shares gained, with Advantest, the world's largest
maker of microchip testers, up 6.2 percent at 2,820 yen.
On Thursday, Intel Corp <INTC.O> shares jumped and helped
lift all three major U.S. stock indexes after Banc of America
Securities upgraded the U.S. semiconductor sector, saying a
modest inventory buildup has eased.
Trade picked up on the Tokyo exchange's first section, with 1
billion shares changing hands, compared with last week's morning
average of 824 million, partly boosted by trades in connection
with the settlement of Nikkei options contracts.
Advancing stocks outnumbered decliners by nearly 5 to 1.
(Reporting by Aiko Hayashi; Editing by Hugh Lawson)
