*Nikkei claws higher as exporters rise on weaker yen
*Surge in key freight index powers shippers higher
*Short-covering dominates amid gloom over longer term
(Adds stocks, details)
By Elaine Lies
TOKYO, Aug 15 (Reuters) - Japan's Nikkei stock average
climbed 0.1 percent on Friday as Canon Inc <7751.T> and other
exporters advanced thanks to a slightly weaker yen and a rise in
U.S. shares sparked partly by lower oil prices.
Shippers steamed higher following sharp gains in a key
freight index, while Mizuho Financial Group <8411.T> clawed up
after it and other banks were mauled earlier this week.
Market players said short-covering after recent slides
dominated amid holiday-thinned trade and added that the
longer-term outlook was grim.
"Japan's consumption is bad, exports to Europe and the United
States aren't good, and it seems that the situation in China is
likely to get tougher too," said Masayoshi Okamoto, head of
dealing at Jujiya Securities.
"In particular, the euro's recent losses will make exports to
the region especially tough."
Japanese manufacturers' sentiment sank to a fresh five-year
low in August, a Reuters poll showed, suggesting the closely
watched Bank of Japan tankan will show further pessimism amid
growing signs of a recession. []
The manufacturers index in the Reuters Tankan survey, a
monthly poll of Japanese firms that tracks the central bank's
quarterly tankan, tumbled to minus 16 in August from minus 10 in
July -- to hit its lowest point since March 2003. []
"The trend for stocks is downward, with the global economy
definitely slowing," said Takahiko Murai, general manager of
equities at Nozomi Securities.
Exporters were one of the brightest spot on the Tokyo bourse,
buoyed as the dollar rose over 110 yen <JPY=>. By midday it was
fetching 110.06 yen, helping to keep the Nikkei solid.
The benchmark Nikkei <> edged up 13.37 points to
12,970.17, while the broader Topix <> gained 0.1 percent to
1,239.66.
SHIPPERS SAIL HIGHER
Shippers forged upwards after the Baltic Dry Index <.BADI>
surged 4.6 percent on Thursday -- a second straight day of gains
for the index after a slide that had begun in early July.
Mitsui O.S.K. Lines <9104.T> gained 2.1 percent to 1,314 yen
and Kawasaki Kisen Kaisha Ltd <9107.T> climbed 4.2 percent to 803
yen. Nippon Yusen KK <9101.T>, Japan's largest shipping firm,
added 2.3 percent to 893 yen.
The gains helped the shipping sub-index <.ISHIP.T> climb 2.2
percent to become the second-biggest gainer among the
sub-indices.
But the Nikkei's biggest boost by volume weight came from
exporters, led by Tokyo Electron <8035.T> with a gain of 3.1
percent to 6,320 yen and followed by Canon, which rose 1.9
percent to 5,260 yen.
Sony Corp <6758.T> climbed 1.7 percent to 4,220 yen and
Toyota Motor Co <7203.T> rose by 1.2 percent to 4,940 yen.
Higher oil prices pushed trading houses lower, with top
trader Mitsubishi Corp <8058.T> losing 1.8 percent to 2,805 yen
and Mitsui & Co <8031.T> down 1.7 percent to 1,779 yen. Itochu
Corp <8001.T> lost 2 percent to 882 yen.
Oil <CLc1> fell below $114 a barrel as a contraction in the
euro zone underscored the threat to global oil demand growth
[] [], sending trading houses lower.
Large banks, many of which gained in early trade, pared
gains, with Mizuho Financial Group emerging the strongest by
midday with a rise of 0.4 percent to 461,000 yen.
Sumitomo Mitsui Financial Group <8316.T> was flat while top
lender Mitsubishi UFJ Financial Group <8306.T>, in the midst of a
bid for full control of a Californian bank, lost 0.9 percent to
813 yen. []
Trade was light on the Tokyo exchange's first section, with
882 million shares changing hands, compared with last week's
morning average of 1 billion. Advancing stocks beat declining
ones by 866 to 672.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
