* Machinery makers up after orders drop less than expected
* Sony jumps after smaller-than-expected annual loss forecast
By Aiko Hayashi
TOKYO, May 15 (Reuters) - Japan's Nikkei average rose 1.7
percent on Friday as machinery shares gained after data showed
orders fell less than expected in March, while Sony Corp <6758.T>
jumped after it forecast a smaller-than-expected annual loss.
Tokyo Electron <8035.T>, the world's No. 2 chip equipment
maker, shot up nearly 7 percent despite projecting a record 63
billion yen ($660 million) operating loss this financial year as
orders stay weak. The forecast was in line with market
expectations. []
Mizuho Financial Group Inc <8411.T> inched up, erasing
earlier losses after the Nikkei business daily reported the bank
was finalising plans to raise around 800 billion yen, with 600
billion yen likely coming from a common stock offering.
[]
Two people familiar with the matter said Mizuho would raise
up to 800 billion yen by August by issuing common shares and
preferred securities. []
"Hopes for a recovery in Sony's core business helped by
restructuring and the view that bad news might have been
exhausted for now are buoying the company's stock," said Fumiyuki
Nakanishi, a manager at SMBC Friend Securities.
"Despite a series of dismal earnings this time around, a
sense of relief has spread in the market that nothing worse will
likely come out at least until April-June earnings
announcements," he said.
The benchmark Nikkei <> added 151.24 points to 9,244.97.
It fell 2.6 percent the previous day to its lowest close since
May 1.
The broader Topix <> climbed 1.9 percent to 878.68.
SONY, MACHINE STOCKS GAIN
Sony shares jumped 5.8 percent to 2,540 yen, after it
forecast its operating loss for the year ending in March 2010
would halve to 110 billion yen from a 227.8 billion loss last
year, less than a consensus forecast of a 132.9 billion yen loss
in a poll of 20 analysts by Thomson Reuters.
Sony also said it would close 14 percent of its 57
manufacturing sites this year -- slightly more than it previously
announced -- but it stood by its plan to slash more than 300
billion yen ($3.2 billion) in costs this financial year.
The cost-cutting measures include reducing 16,000 jobs.
[]
Shares of Tokyo Electron surged 6.6 percent to 4,350 yen, the
top positive contributor to the Nikkei 225.
Mizuho rose 0.4 percent to 233 yen, after earlier falling
nearly 4 percent on the capital raising news.
Shares of industrial robot maker Fanuc Ltd <6954.T> climbed
1.6 percent to 7,690 yen, while Komatsu Ltd <6301.T> advanced 3.1
percent to 1,344 yen.
Japan's core private-sector machinery orders fell 1.3 percent
in March from the previous month, better than a median market
forecast for a 4.5 percent decline. []
"The machinery data suggests orders from the manufacturing
sector have probably bottomed out due to a halt in the decline in
Japan's exports and an end to inventory adjustment," said Tetsuro
Sawano, a senior fixed income strategist at Mitsubishi UFJ
Securities.
"But machinery orders overall may struggle due to the severe
condition of the economy such as labour conditions and weak
consumption."
Shipping firms gained as the Baltic Exchange's main sea
freight index <.BADI>, which tracks rates to ship dry
commodities, rose for a 10th straight day on Thursday.
The shipping subindex <.ISHIP.T> jumped 3.5 percent, while
Nippon Yusen <9101.T>, Japan's biggest ocean shipping line, rose
3.4 percent to 430 yen and Kawasaki Kisen Kaisha <9107.T> powered
6 percent higher to 390 yen.
Trade was subdued on the Tokyo stock exchange's first
section, with 1.1 billion shares changing hands, below last
week's morning average of 1.3 billion.
Advancing stocks outnumbered declining ones by 3 to 1.
(Additional reporting by the Tokyo newsroom; Editing by Chris
Gallagher)
