* Nikkei up 0.2 pct, Kyocera gains
* Softer yen helps, but earnings worries weigh on market
* Komatsu drops on profit warning
* Nomura gains despite likely quarterly loss
(Adds stocks, details)
By Aiko Hayashi
TOKYO, Jan 26 (Reuters) - The Nikkei average rose 0.2 percent
on Monday helped by a softer yen and as Kyocera Corp <6971.T>
jumped on a positive report by Barron's, but gains were limited
with Komatsu Ltd's <6301.T> skidding on a profit warning.
Nomura Holdings Inc <8604.T>, Japan's largest brokerage,
jumped nearly 4 percent as investors looked beyond expectations
of a quarterly loss to hopes that this would complete write-downs
related to its purchase of Lehman Brothers assets.
But trade was cautious as the Japanese corporate earnings
season moves into full gear this week, with Sony Corp <6758.T>,
which has warned of a massive loss, to report results on
Thursday. Shin-Etsu Chemical Co <4063.T> announces results later
on Monday.
Worries about corporate earnings after a series of downward
revisions were widespread and moves in the currency market
contributed to volatility in the stock market, market analysts
said.
"Investors know that profits are going to fall in the year to
March 2010 but now they are trying to factor in the notion that
earnings may further deteriorate more than they had expected,"
said Takahiko Murai, general manager of equities at Nozomi
Securities.
The benchmark Nikkei <> added 11.72 points to 7,756.97,
after moving in and out of negative territory throughout the
morning. It slid nearly 4 percent on Friday to book its lowest
close since Nov. 20.
The broader Topix <> dipped 0.2 percent to end Monday
morning at 772.42.
Trade was light on the Tokyo exchange's first section, with
740 million shares changing hands, compared with last week's
morning average of 824 million.
Advancing stocks outnumbered declining ones, 874 to 687.
NOMURA JUMPS, KOMATSU SKIDS
The dollar was trading around 89.12 yen <JPY=>, after falling
last week as low as 87.10 yen, the lowest since July 1995.
Investors welcome a softer yen as it boosts exporters' overseas
profits when repatriated.
Shares of Kyocera jumped 6.7 percent to 6,050 yen after
financial newspaper Barron's said the electronics parts maker is
in an excellent position to benefit from an economic recovery as
it has strong positions in such businesses as solar panels and
cellphones.
Nomura shares rose 3.8 percent to 629 yen.
"If Nomura completes reporting most of the Lehman Brothers
related losses in the previous quarter, that would be positive
news for the current quarter," said Wataru Kasatani, a senior
analyst at Meiji Dresdner Asset Management Co. "That means our
concerns would be erased."
Smaller rival Daiwa Securities Group <8601.T> also climbed
3.5 percent to 476 yen.
But Komatsu, which competes with the world's No.1 Caterpillar
Inc <CAT.N>, dropped 4.9 percent to 907 yen after slashing its
profit forecast for this year by a third on Friday to a level
well below market consensus, blaming a sudden, steep fall in
global demand. []
Sony shares slipped 0.7 percent to 1,790 yen. The stock
tumbled 7 percent on Friday after the electronics and
entertainment onglomerate warned of a record annual operating
loss and unveiled a more aggressive cost-cutting plan.
[]
(Additional reporting by Junko Fujita; Editing by Edwina Gibbs)
