Nikkei gains 0.5 pct on upbeat earnings, yen helps

                                
 * Nikkei extends gains after snapping 9-day slide on Tuesday
                                
 * Market lifted by upbeat results from Goldman Sachs, Intel
                                
 * Square Enix boosted by strong demand for blockbuster game
                                
 By Shinichi Saoshiro
                                
 TOKYO, July 15 (Reuters) - Japan's Nikkei average rose 0.5
percent on Wednesday after upbeat results from Goldman Sachs
<GS.N> and Intel <INTC.O> lifted hopes of a recovery for the
global economy and helped weaken the yen.
                                
 But market gains were limited, with some analysts saying that
investors who were hurt during a nine-day slide in the market
which was broken on Tuesday, may be selling into the upturn to
cut their losses.
                                
 "Strong earnings results from the United States, the yen's
stalled advance and upbeat results from some domestic companies
are favouring the market," said Shoji Yoshigoe, a senior
investment strategist at Mitsubishi UFJ Securities.
                                
 Domestic firms with better-than-expected earning prospects
included Sanyo Electric Co <6764.T> which advanced 0.5 percent
after the Nikkei business daily said it would book a smaller
operating loss than the company's current estimate.
                                
 "The Nikkei could have risen even further today given all the
market-friendly factors, but a rapid advance was made difficult
after the damage suffered by investors during the sharp drop this
month," said Yoshinori Nagano, a senior strategist at Daiwa Asset
Management.
                                
 The benchmark Nikkei <.N225> rose 42.52 points to 9,304.33.
It fell to an eight-week low of 9,050.33 on Monday after climbing
to a six-month high of 10,170.82 in mid-June.
                                
 The broader Topix <.TOPX> gained 0.3 percent to 870.72.
                                
 CHIP-RELATED STOCKS, SQUARE ENIX RISE
                                
 Goldman Sachs trounced forecasts with a 33 percent surge in
quarterly earnings, while chipmaker Intel reported results after
the bell that surpassed expectations, sending its stock 7.4
percent higher in extended trade. [ID:nN14260734] [ID:nN14289399]
                                
 Chip-related stocks rose after Intel's results, with Tokyo
Electron <8035.T> gaining 1.7 percent to 4,310 yen and Advantest
Corp <6857.T> adding 2.1 percent to 1,751 yen.
                                
 Data released on Tuesday showed U.S. retail sales climbed 0.6
percent in June, although a big part of the gain was due to
rising gasoline prices, indicating that consumers remained wary
of stepping up discretionary spending. [ID:nN14252432]
                                
 Exporters gained as a recent surge in the yen was tempered,
with Sony Corp <6758.T> rising 0.7 percent to 2,300 yen and Canon
Inc <7751.T> climbing 0.7  percent to 3,040 yen.
                                
 The dollar edged up 0.1 percent to 93.60 yen <JPY=>, pulling
back from a five-month low of 91.73 yen hit on Monday. [FRX/]
                                
 Sanyo advanced 0.5 percent to 209 yen after the Nikkei
business daily reported that it will likely report an operating
loss of about 5 billion yen ($53.4 million) for the
April-September first half, better than its original forecast for
a loss of 20 billion yen.
                                
 Shares of Hisamitsu Pharmaceutical <4530.T>, a drug and
health goods maker, climbed 2.8 percent to 3,270 yen after the
company said on Tuesday it would buy Miami-based Noven
Pharmaceuticals Inc <NOVN.O> for $430 million to expand in the
United States. [ID:nT77072]
                                
 Square Enix <9684.T> jumped 4.4 percent to 2,130 yen after
the video game maker said shipments in Japan of its latest sequel
to the blockbuster 'Dragon Quest' game passed three million units
four days after its launch on Saturday.
                                
 Shares of Toko Electric <6921.T> were bid higher by their
daily limit of 80 yen to 380 yen, up 26.7 percent from Tuesday's
close, after the company and Toshiba <6502.T> said they plan to
set up a joint venture to make electronic gauges to measure
electricity, gas and water use.
                                
 The gauges will be used as part of so-called smart grids,
they said. Toshiba added 2.1 percent to 340 yen.
                                
 Kawasaki Kisen <9107.T> and other shipping companies were
boosted after the Baltic Exchange's dry freight index <.BADI>
rose more than 4 percent on Tuesday to halt a nine-day drop.
                                
 Kawasaki Kisen gained 2.3 percent to 350 yen and Nippon Yusen
<9101.T> rose 3.1 percent to 397 yen.
                                
 Trade was moderate on the Tokyo exchange's first section,
with 1 billion shares changing hands, in line with last week's
morning average.
                                
 Advancing stocks outnumbered declining ones 913 to 645.
  (Editing by Joseph Radford)