Nikkei rises to 3-week high on Fed view; Nintendo soars
* Nikkei above key technical levels * Nintendo soars on unexpected operating profit for FY * Yahoo Japan dives on forecast cut for Apr-Dec period * 245 companies' earnings on Thurs, BOJ policy meeting focused Fri By Ayai Tomisawa TOKYO, Oct 30 (Reuters) - Japan's Nikkei share average rose to a fresh three-week high on Thursday morning as optimism about the U.S. economy buoyed sentiment, while Nintendo Co soared on better-than-expected earnings. The U.S. Federal Reserve said after a two-day meeting on Thursday that the U.S. labour market was improving, but said interest rates would remain low for a "considerable time." The Nikkei benchmark rose 0.7 percent to 15,665.24 points by mid-morning, the highest since Oct.9. The index has broken above some technical levels, signalling a recovery from a dip hit a few weeks ago, analysts said. The Nikkei has traded above its 25-day moving average of 15,146.68 and its 13-week moving average of 15,516.75. "The market is relieved as the rates would remain low for some time while seeing a recovery in the U.S. economy," said Nobuhiko Kuramochi, a strategist at Mizuho Securities. The Nikkei is recovering from a five-month low hit on Oct 17, when global markets retreated on fears that the world economy was slowing. Market observers added that before taking further positions, investors will likely await other big events such as 245 Japanese companies' quarterly earnings scheduled to be released on Thursday as well as the Bank Of Japan's policy meeting on Friday. Nomura Securities said that as of July, analysts expected that Japanese companies would post 9 percent rises in pre-tax profits for the year ending March. Thanks to the weaker yen, investors expect that a number of companies will raise their full-year forecasts, analysts said. Japanese video game maker Nintendo jumped 7.7 percent to a four-week high after it vaulted to an unexpected quarterly operating profit as new game "Mario Kart 8" stoked sales of its Wii U console. On the other hand, Yahoo Japan Corp tumbled 7.0 percent to 384 yen, the lowest since February 2013 after the company lowered its operating forecast for the April-Dec quarter by 5.8 percent to a range of 139.9 billion-142.0 billion yen. The broader Topix added 0.6 percent to 1,278.51, and the JPX-Nikkei Index 400 gained 0.7 percent to 11,644.80. (Editing by Kim Coghill)
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