* High-techs gain after U.S. Nasdaq hits 15-month high
* Exporters buoyant as dollar hits 7-week peak vs yen
* Toshiba climbs; Isuzu jumps on GM engine development report
* Investors keen to see if Nikkei closes above 10,200
By Aiko Hayashi
TOKYO, Dec 22 (Reuters) - Japan's Nikkei average hit its
highest in eight weeks on Tuesday as a weaker yen lifted
exporters, while Isuzu Motors <7202.T> jumped after a report that
the automaker seeks to develop next-generation diesel engines for
General Motors [].
Chip-related stocks got a boost after the Nikkei business
daily reported Toshiba Corp <6502.T> and partner Sandisk Corp
<SNDK.O> would jointly invest 150 billion yen ($1.7 billion) to
boost their venture's production capacity by about 40 percent.
"The market is being driven higher by gains in high-tech
stocks on the back of the weaker yen and overseas news," said
Hajime Nakajima, deputy general manager at Cosmo Securities.
Shares of high-tech exporters also gained after the
tech-heavy Nasdaq hit a 15-month high following a brokerage
upgrade on Intel Corp <INTC.O>, citing solid "end-market"
conditions. [] []
"But the Nikkei will likely lose upward momentum as it
rebounds toward 10,500, with investors wanting to sell around
that level for now," Nakajima said.
The benchmark Nikkei <> was up 1.4 percent at 10,326.23
by midafternoon, after rising as high as 10,332.70, its highest
level since Oct. 26.
The broader Topix <> added 1.2 percent to 902.12.
The dollar struck a seven-week high against the yen in Asian
trade, supported by year-end unwinding of short positions in the
greenback. []
Analysts said the Nikkei's rise to hold well above 10,200 --
a level it has failed to maintain in recent sessions -- boded
well for trade for at least the rest of this year.
"The Nikkei is likely to climb to 10,500 before the year
ends," said Mitsushige Akino, chief fund manager of Ichiyoshi
Investment Management.
"But whether the market will extend gains next year is still
a bit doubtful, given the fact that it is mostly retail investors
chasing short-term profits behind today's rally."
HIGH TECHS SHINE
Tokyo Electron Ltd <8035.T>, the world's No.2 semiconductor
equipment maker, climbed 2.7 percent to 5,670 yen and chip-tester
maker Advantest Corp <6857.T> gained 2.7 percent to 2,295 yen.
Sony Corp <6758.T> rose 2.5 percent to 2,645 yen.
High-tech shares had also advanced the previous day following
solid quarterly results from Oracle <ORCL.O> and BlackBerry maker
Research In Motion <RIMM.O>.
Toshiba Corp <6502.T> jumped 4.2 percent to 516 yen, while
DRAM chipmaker Elpida <6665.T> climbed 4.4 percent to 1,384 yen.
Toyota Motor <7203.T> rose 2.2 percent to 3,800 yen after
media said the world's biggest automaker plans to cut car parts
procurement costs by around 30 percent over three years to help
it regain profitability. []
Isuzu shot up 6.8 percent to 172 yen after Isuzu President
Susumu Hosoi was quoted by the Nikkei business daily as saying in
an interview that the automaker is sounding out General Motors Co
[] on a proposal to design and develop next-generation
diesel engines for the U.S. partner.
The move eyes tougher regulations on fuel efficiency and
emissions that will likely be put in place in the United States
and Europe, the paper said.
SPC Electronics <6818.T> surged 24.4 percent to 112 yen after
Mitsubishi Electric Corp <6503.T> said on Monday it was planning
to make SPC a fully owned subsidiary by allocating 0.17
Mitsubishi share for each SPC share.
Mitsubishi Electric advanced 3.4 percent to 674 yen.
(Additional reporting by Rika Otsuka; Editing by Chris
Gallagher)
