(Adds shares, comments)
By Aiko Hayashi
TOKYO, March 25 (Reuters) - Japan's Nikkei average rose 1.3
percent on Tuesday as Canon Inc <7751.T> and other exporters
climbed with the yen trading well off a near 13-year high posted
last week against the dollar, easing some concern about
exporters' earnings outlooks.
Mitsui & Co <8031.T> jumped after the Nikkei business daily
said the trading house would participate in a power and water
desalination project in Qatar. Nippon Steel Corp <5401.T> rose
after the same paper said the steelmaker planned to spend 500 to
600 billion yen ($5 to $6 billion) to build a steel factory in
Brazil. []
But property stocks such as Mitsui Fudosan <8801.T> weighed
on the overall market after land price data showed property
prices rose for a second straight year in 2007, but analysts said
the honeymoon is already over with the market hit hard by tighter
credit conditions. []
"The yen trading above 100 yen (versus the dollar) provides a
sense of relief to the market," said Yumi Nishimura, manager of
the investment advisory section at Daiwa Securities SMBC.
"But market gains are lacking speed due to a small number of
participants and after recent advances in the Japanese market."
Nishimura also said investors could not be certain if the
softer yen trend would continue because of lingering signs about
a weak dollar.
The benchmark Nikkei <> ended the morning session up
166.24 points at 12,646.33. The Nikkei ended flat on Monday,
snapping a three-day winning streak.
The broader TOPIX index <> added 0.8 percent or 10.31
points to 1,234.46.
In early Asian trade, the dollar was trading around 100.90
yen <JPY=>, well off last week's low of 95.77 yen.
U.S. stocks rang up big gains after JPMorgan Chase & Co
<JPM.N> lifted its offer for Bear Stearns <BSC.N> to $10 a share
from $2, easing concern that other investment bank shares could
tumble and softening credit market fears. []
"The Bear news also indicates that the worst seems to be
over, although uncertainty about the future still remains," said
Katsuhiko Kodama, senior strategist at Toyo Securities.
EXPORTERS IN FAVOUR
Canon jumped 3.9 percent to 4,780 yen and Sony Corp <6758.T>
climbed 1.9 percent to 4,220 yen.
Among automakers, Honda Motor Co Ltd <7267.T> gained 3.1
percent to 3,040 yen.
Investors have fretted over the strength of the yen against
the dollar as it makes Japanese goods less competitive in
overseas markets and cuts into profits made abroad when brought
back to Japan.
Many auto and tech exporters have assumed a currency rate of
105 yen to the dollar in making their profit forecasts.
Japanese bank shares largely failed to benefit from the news
about the improved buyout offer for Bear as they had already been
rising steadily in recent sessions, said Daiwa Securities SMBC's
Nishimura.
Shares of top lender Mitsubishi UFJ Financial Group <8306.T>
were down 1.1 percent at 904 yen.
Property firms fell with Mitsui Fudosan down 2.4 percent at
1,901 yen, while Mitsubishi Estate Co Ltd <8802.T> dropped 2.3
percent to 2,335 yen and Sumitomo Realty & Development <8830.T>
shed 1.8 percent to 1,658 yen.
Shares of Mitsui & Co jumped 4.1 percent to 2,005 yen after
the Nikkei business daily reported that the trading house will
participate in a more than 400 billion yen ($4 billion) power and
water desalination project in Qatar through a local joint
venture.
Nippon Steel climbed 2.6 percent to 506 yen.
Trade was light on the Tokyo exchange's first section, with
829 million shares changing hands in morning trade, compared with
last week's morning average of 973 million.
Advancing stocks outnumbered declining ones by a ratio of
more than 2 to 1.
(Reporting by Aiko Hayashi; Editing by Chris Gallagher)
