Nikkei rises on Wall St, BOJ's ETF buying; oil shares fall
* BOJ buys 38 billion yen of ETFs on Monday * Oil names tumble after oil prices continue to fall * Sumitomo Metal Mining soars on outlook hike By Ayai Tomisawa TOKYO, Nov 11 (Reuters) - Japan's Nikkei share average rose on Tuesday, buoyed by Wall Street gains and as the weaker yen helped exporters, but oil-related shares such as Inpex Corp underperformed after oil prices fell further. Sentiment was also boosted by the Bank Of Japan's move on Monday to purchase 38 billion yen ($331.2 million) of exchange-traded funds (ETFs), as part of its recently beefed-up economic stimulus campaign. The news was announced after markets closed on Monday. The Nikkei benchmark gained 0.6 percent to 16,874.35 by midmorning, after falling 0.6 percent in the previous session. "The central bank's purchase of ETFs ... is supporting the mood," said Isao Kubo, equity strategist at Nissay Asset Management. "We don't have major catalysts this week but underlining sentiment has been positive thanks to the easing. The Japanese market should stay resilient for a while." Investors have chased stocks higher after the Bank Of Japan surprised the market and eased policy further on Oct. 31, and the Government Pension Investment Fund announced it would increase its allocation to domestic stocks. BOJ Governor Haruhiko Kuroda said the bank would pour 3 trillion yen into ETFs. Nissay's Kubo said that the Nikkei's immediate resistance level is seen at the seven-year high of 17,127.66 marked last week. Exporters were stronger after the dollar was back near 115.00 yen and not far off Friday's seven-year peak of 115.60, after recovering from a dip to 113.86 Toyota Motor Corp rose 1.1 percent, Nikon Corp added 1.4 percent and Tokyo Electron Ltd advanced 3.1 percent. Sumitomo Metal Mining Co, which hiked its full-year net profit forecast to 106.0 billion yen from previously forecast 77 billion yen, jumped 7.1 percent to a two-month high of 1,635.5 yen. Oil prices extended recent losses, with U.S. crude falling below $78 a barrel, hurting oil-related names. Inpex tumbled 1.9 percent and Japan Petroleum Exploration fell 0.9 percent. The broader Topix gained 0.4 percent to 1,365.15, and the JPX-Nikkei Index 400 advanced 0.4 percent to 12,459.08. (1 US dollar = 114.7500 Japanese yen) (Editing by Kim Coghill)
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