Nikkei rises after weaker yen lifts exporters, banks outperform
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By Ayai Tomisawa
TOKYO, April 12 (Reuters) - Japan's Nikkei share average rose on Tuesday morning as the dollar gained versus the yen in early morning trade, lifting cyclical stocks such as exporters as well as recently battered banking shares.
Weakness in the dollar kept the market worried after it slumped to a 17-month low of 107.63 yen on Monday but by 0146 GMT on Tuesday, the dollar stood at 108.14 yen.
The Nikkei gained 1.0 percent to 15,903.30 in midmorning trade. The benchmark index has fallen 16 percent this year, while it is retracing about 40 percent of gains since the start of 'Abenomics' in 2012.
Traders said that Japanese equities are swayed by foreign exchange rates, with Japan Inc's last fiscal years' earnings announcements scheduled within a few weeks. Investors will likely start taking positions after companies release their forecasts for this fiscal year, they said.
They added that the Nikkei may stay sluggish until then, as many investors remain sceptical of 'Abenomics."
"Investors are frustrated about the lack of effective measures against the strong yen," said Hikaru Sato, senior technical analyst at Daiwa Securities. "Confidence in Japanese stocks has waned since the end of last year and it still hasn't recovered." Continuación...