Nikkei rises on Wall St, BOJ's ETF buying; oil shares fall

lunes 10 de noviembre de 2014 21:37 GYT

* 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
    "The central bank's purchase of ETFs ... is supporting the
mood," said Isao Kubo, equity strategist at Nissay Asset
    "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
    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
    The broader Topix gained 0.4 percent to 1,365.15,
and the JPX-Nikkei Index 400 advanced 0.4 percent to

(1 US dollar = 114.7500 Japanese yen)

 (Editing by Kim Coghill)