(Adds stocks and comments)
By Taiga Uranaka
TOKYO, April 1 (Reuters) - The Nikkei average rose 1.4
percent on Tuesday, led higher by exporters such as Canon Inc
<7751.T>, tracking gains on Wall Street.
The market rebounded from a tumble on Monday, despite the
weaker-than-expected results of a Bank of Japan tankan business
sentiment survey.
"There was not much surprise in the tankan. The market has
already priced in weak readings," said Harushige Kobayashi, head
of research at Maruwa Securities. "It's natural to see a rebound
of this size, given yesterday's sharp fall."
Business sentiment among big Japanese manufacturers sank to a
four-year low in the March tankan, adding to evidence of a
worsening economic outlook and reinforcing some market
speculation that the central bank may cut interest rates later in
the year.
Worries about the global credit crunch, rising raw material
costs, fragile stock prices, and a rise in the yen contributed to
weakening business confidence, and the outlook for the coming
quarter was even more bleak. []
Trade in Tokyo remained thin, with investors opting to sit
tight ahead of a raft of economic data and earnings from U.S.
banks later in the month.
"Investors don't feel an urgent need to buy any particular
sector, and they are also holding off ahead of earnings," said
Norio Shimura, deputy head of the equity department at Chuo
Securities.
The benchmark Nikkei <> ended the morning session up at
12,697.99. The broader TOPIX <> gained 1.4 percent to
1,230.17.
U.S. stocks gained on Monday as a report showing
stronger-than-expected Midwestern business activity eased worries
about the economy and a plan for a regulatory overhaul raised
hopes for calmer financial markets.
In Tokyo, digital camera maker Canon rose 3.1 percent to
4,730 yen. Video game maker Konami Corp <9766.T> shot up 7.5
percent to 4,030 yen, the biggest contributor to the Nikkei.
Japan's three largest banks gained, with No. 1 Mitsubishi UFJ
Financial Group <8306.T> climbing 1.4 percent to 871 yen.
Computer memory chip maker Elpida Memory Inc <6665.T> surged
7.2 percent to 3,560 yen, extending gains after the company said
on Monday it aimed to raise prices 20 percent in April to reverse
a brutal industrywide slump. []
Chiyoda Corp <6366.T> was overwhelmed by sell orders
indicated at 805 yen, down by its daily limit of 100 yen from
Monday's close after the plant and engineering firm slashed its
earnings estimates and dividend outlook.
Chiyoda cut its operating profit outlook for the year that
ended last month to 7 billion yen, a 68 percent drop from an
earlier estimate, battered by labour shortages and construction
delays for projects in Qatar.
Ajinomoto Co Inc <2802.T> jumped 3.6 percent to 1,046 yen
after Nomura Securities maintained its "buy" rating on the stock
even after Japan's largest seasonings maker said it would miss
its profit forecasts for the year ended on Monday.
Trade was moderate, with some 732 million shares changing
hands, compared with last week's morning average of 740 million.
Advancers outnumbered decliners by more than 2 to 1.
