* Risk-taking likely emerging, helping Japan stocks -analyst
* Yen strength likely to cap further climbs -analysts
* Nikkei's next targets seen around 9,700-9,800
By Aiko Hayashi
TOKYO, Oct 14 (Reuters) - Japan's Nikkei rose 1.8 percent on
Thursday, buoyed by a jump in resource stocks as dollar weakness
fuelled a climb in commodity prices, but analysts said the
persistent strength in the yen will likely keep gains in check.
Robust earnings results from U.S. heavyweights such as
JPMorgan Chase & Co <JPM.N> and Intel Corp <INTC.O> have also
bolstered investor confidence and helped to spur short-covering,
analysts said.
"Expectations of further easing by the United States have led
to dollar weakness and thus to a rally in commodities. A
so-called risk-taking money flow is emerging in the market," said
Yumi Nishimura, deputy general manager at Daiwa Securities
Capital Markets.
"The market also welcomed U.S. earnings that haven't been as
poor as feared. But currency moves remain the top focus in the
Tokyo market and the strong yen will likely cap gains,
particularly in exporter shares."
By the midday break, the benchmark Nikkei <> was up
171.27 points at 9,574.78, after rising as much as 2.1 percent to
9,602.69.
The broader Topix <> gained 1.5 percent to 834.98.
In early Asian trade, the dollar changed hands at around
81.42 yen <JPY=>, but fell to a fresh 15-year low of 81.28 yen
after the stock market finished the morning session.
Caution remained that Japanese authorities could intervene
the closer the greenback gets to its record low of 79.75 yen.
[]
U.S. stocks rose about 1 percent as stronger-than-expected
earnings and lingering U.S. dollar weakness increased demand for
equities. But Dow components JPMorgan Chase & Co and Intel saw
their shares slide after recent rallies, despite the lift to
sentiment from their strong results. []
On the charts, the Nikkei's next upward targets stand near
recent peaks: the first around 9,700 marked this month, and then
near 9,800 hit in July.
Strong support lies at the 38.2 percent retracement of its
September-October rally and its 55-day moving average, both of
which stand around 9,365.
RESOURCE STOCKS BUOY
Amid a bull run for commodities, with copper hitting a
27-month high and gold returning to record peaks,
resource-related stocks jumped.
Mitsui Mining and Smelting <5706.T> advanced 5.3 percent to
259 yen and Sumitomo Metal Mining <5713.T> rose 3.4 percent to
1,444 yen. Shares of JX Holdings <5020.T>, which owns Japan's top
copper smelter Pan Pacific Copper, climbed 5.6 percent to 488
yen.
Japan's top oil explorer Inpex Corp <1605.T> rose 3.2 percent
to 450,500 yen.
Yahoo Japan Corp <4689.T> shot up 5.5 percent to 30,350 yen
after the Wall Street Journal reported several private equity
firms, including Silver Lake Partners and Blackstone Group, are
considering buying Yahoo Inc <YHOO.O> either by teaming up with
AOL Inc <AOL.N> or taking it private themselves. []
Alps Electric Co <6770.T> rose 4.2 percent to 740 yen after
the Nikkei business daily said the electronic parts maker was set
to report more than 20 billion yen in operating profit for the
half year to September, compared with a loss of 17 billion yen in
the same period last year.
(Editing by Edmund Klamann and Edwina Gibbs)
