* Nikkei climbs, may test psychologically key 10,000 level
* Chip-equipment stocks gain after upbeat order data,
* Panasonic and Fujitsu surge
* Fears of a Wall St fall limiting gains before weekend
By Elaine Lies
TOKYO, July 24 (Reuters) - Japan's Nikkei stock average rose
1.5 percent on Friday, on track for its eighth straight day of
gains, after upbeat corporate earnings fuelled hopes for a U.S.
economic recovery and chip equipment stocks climbed on strong
order data.
Panasonic Corp <6752.T> surged nearly 7 percent after a
broker raised its rating on the stock, while Fujitsu Ltd <6702.T>
climbed almost 6 percent after it announced better-than-expected
earnings goals which prompted analysts to lift their estimates.
Profits from U.S. bellwethers such as manufacturer 3M & Co
<MMM.N> and telecoms firm AT&T Inc <T.N> provided further
evidence that second-quarter earnings were more upbeat than
initially thought, sending the Dow industrials above the key
9,000 mark for the first time since January.
But investors were growing wary that Wall Street is now set
for a fall, especially after Microsoft Corp <MSFT.O>, American
Express <AXP.N> and Amazon.com Inc <AMZN.O> posted
disappointing results after the bell, sending their stocks lower
and weighing on futures.
"Microsoft's results are especially disappointing after Intel
did so well, and on top of that we have these three big names all
at once," said Norihito Fujito, general manager at the investment
research and information division of Mitsubishi UFJ Securities.
"With the weekend coming up, I think people are reluctant to
buy amidst all this."
The benchmark Nikkei <> gained 149.48 points to 9,942.42
and some analysts say it could test 10,000 later in the day, a
level it last hit on July 1, if hedge funds come in to buy
heavily just before the bell as they have the rest of the week.
The Nikkei is on track for its eighth straight trading day of
gains, a winning streak unseen since November 2005.
The broader Topix <> rose 1.4 percent to 920.95.
Others were optimistic about the coming week, with technical
charts also lending support.
The Nikkei has broken sharply above resistance at the top of
its Ichimoku cloud, which comes in around 9,840, and the Topix
broke above its cloud as well on Friday, which some analysts said
bolstered the chances that Tokyo shares are now set for gains.
"U.S. manufacturer earnings are coming in quite strong, and
this is producing a good spillover effect on Japanese
manufacturers -- the 'Apple Effect' and so on," said Masayoshi
Okamoto, head of dealing at Jujiya Securities.
"We move deep into the earnings season next week and even
though the market has basically factored in positive results,
shares are likely to respond well if things are good here too."
Apple Inc <AAPL.O> earlier this week reported a quarterly
profit that beat forecasts.
ADVANTEST ADVANCES
Consumer electronics maker Panasonic rose 6.8 percent to
1,370 yen after JPMorgan raised its rating to "overweight" from
"neutral" and lifted its price target to 2,000 yen.
Fujitsu, Japan's biggest IT services firm jumped 5.9 percent
to 575 yen.
Advantest Corp <6857.T>, the world's No. 2 maker of chip
testing machines, led gains for chip equipment makers.
It climbed 4.6 percent to 1,880 yen after the Nikkei business
daily said that orders for Advantest's chip-testing equipment
topped more than 10 billion yen in April-June, double the order
value received in the prior quarter.
Data also showed orders for Japanese equipment used to make
semiconductors outpaced sales for the third straight month in
June, a sign of a recovery in chipmakers' investment.
[].
Tokyo Electron Ltd <8035.T>, the world's No. 2 chip equipment
maker, rose 2.7 percent to 4,630 yen. and Nikon Corp <7731.T>, a
maker of steppers, rose 1.1 percent to 1,720 yen.
Electronics maker Sony Corp <6758.T> rose 2.4 percent and
Sharp Corp <6753.T> 2.9 percent after the Nikkei business daily
said Sony will likely invest more than $1.1 billion in a liquid
crystal display TV panel venture to be formed with Sharp
[]
Shares of Asahi Co Ltd <3333.T> rose 2.6 percent to 3,200 yen
after the president of Japan's largest bicycle shop operator told
Reuters that the company was certain to lift its annual outlook,
helped by brisk demand for sports bicycles and battery-assisted
models. []
Trade was active, with 1.3 billion shares changing hands,
compared with last week's morning average of 1 billion.
Advancing shares outpaced declining ones by more than 4 to 1.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
