*Nikkei gains 3.7 pct after losing 5 pct on Friday
*Exporters gain on yen, Panasonic up after Sankyo deal news
*U.S. presidential election eyed
(Adds comment, details)
By Aiko Hayashi
TOKYO, Nov 4 (Reuters) - The Nikkei average advanced 3.7
percent on Tuesday as exporters gained on a softer yen, while
electronics maker Panasonic <6752.T> jumped after sources said it
was planning to take over Sanyo Electric <6764.T>.
Japanese markets were closed for a national holiday on
Monday, while U.S. stocks ended little changed as investors were
unwilling to place big bets before the presidential election.
[]
"The Japanese market gained after it was oversold on Friday
and after overseas markets were calm during the long weekend,"
said Masaru Hamasaki, a senior strategist at Toyota Asset
Management.
"But after an initial rebound, investors may stay on the
sidelines ahead of the U.S. presidential election because the
result is also very important to Japan."
Market analysts said they were focused on economic plans that
will likely be unveiled by the new U.S. president.
Trends in Tuesday's U.S. presidential election race between
Democrat Barack Obama and Republican John McCain could become
clear soon after the first polls begin to close at 6 p.m. EST
(2300 GMT) in Indiana. []
The benchmark Nikkei <> advanced 320.89 points to end
morning trade at 8,897.87, after ending Friday down 5 percent.
It ended the month of October down 24 percent, its biggest
monthly fall in its 58-year history, although it gained 12.1
percent last week.
The broader Topix <> climbed 3.3 percent to 895.95.
Trade was light on the Tokyo exchange's first section, with
947 million shares changing hands, compared with last week's
morning average of 1.21 billion.
PANASONIC GAINS, EXPORTERS UP
Shares of Panasonic gained 4.6 percent to 1,582 yen, after
rising as much as 9.3 percent at one stage.
Sanyo was untraded due to a glut of buy orders at 195 yen, up
34.5 percent from Friday's close.
Three people familiar with the matter said on Sunday the
heads of the two firms have agreed to a deal that would see
Panasonic take over Sanyo to create Japan's largest electronics
maker. []
"The reports about Panasonic are also positive for the
overall market as they indicate industry realignment could happen
across the board and across borders because stocks are so cheap
now," said Fumiyuki Nakanishi, manager at SMBC Friend Securities.
The dollar slipped 0.2 percent to 98.97 yen <JPY=> after
rising as high as 99.36 yen in early Asian trade on trading
platform EBS. Investors welcome a softer yen as it boosts
exporters' overseas profits when they are brought back home.
Electronic components maker TDK Corp <6762.T> shot up 8.1
percent to 3,490 yen and Toyota Motor Corp <7203.T> climbed 4.6
percent to 3,900 yen.
Among stocks that fell, Toto Ltd <5332.T> lost 4.5 percent to
642 yen after the toilet and bathroom equipment maker slashed its
full-year profit and dividend outlook, hurt by weak housing
starts and high raw materials costs.
Advancing stocks outpaced declining ones by more than 2 to 1.
(Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
