Nikkei rises on weak yen, ECB stance; Suzuki Motor, Takata fall

jueves 6 de noviembre de 2014 22:00 GYT

* Suzuki Motor tumbles to 1-week low on weak earnings
    * Nikkei prone to profit-taking when it nears 17,000 -
    * Takata falls after NYT says company hid risks

    By Ayai Tomisawa
    TOKYO, Nov 7 (Reuters) - Japan's Nikkei share average rose
on Friday morning as sentiment was supported by a pledge from
the European Central Bank to take further steps to revive the
euro zone economy, while Suzuki Motor Corp tumbled on
poor earnings.
    Takata Corp was another big loser, falling more
than 4 percent, reversing earlier gains after a newspaper
reported that the Japanese auto parts maker had concealed the
risks of potentially defective air bags following an accident in
    ECB President Mario Draghi said the central bank aims to
increase the size of its balance sheet towards the levels of
2012, effectively committing to add an extra 1 trillion euros to
get a fragile economy motoring again. 
    The news was taken as a positive signal by many investors
unnerved by signs of slowing global growth.
    The Nikkei rose 0.6 percent to 16,885.64 in
mid-morning trade after dropping 0.9 percent to 16,792.48 on
Thursday. For the week, the benchmark has added 2.9 percent.
    The Nikkei has stayed closer to a seven-year high at
17,127.66 marked on Tuesday as investors cheered the Bank of
Japan's shock move on Friday to expand its monetary stimulus
programme, as well as a decision by the Government Pension
Investment Fund to increase its allocation of funds to domestic
    But traders say the Nikkei is prone to profit-taking when it
trades above 17,000.
    "Due to the steep rises over the past few days, 17,000 has
become a psychological resistance level," said Jun Yunoki, a
strategist at Nomura Securities. "Valuation is still cheep, but
people are cautious as the market seems overheated."
    However, he said there is more room to rise in the medium
term on expectations that companies will post strong full-year
earnings thanks to the weaker yen.
    A weak yen continued to underpin some exporters as the 
dollar traded at 115.23 yen, holding close to a
seven-year high of 115.42 yen hit on Thursday. That helped
exporters such as Honda Motor Co and Panasonic Corp
, up  1.0 percent and 1.4 percent, respectively.
    Chip-making device maker Disco Corp soared 7.4
percent after it raised its operating profit outlook for the
year through March to 23.2 billion yen from 19.1 billion yen. 
    However, Suzuki Motor dived 6.0 percent to a one-week low
after its operating profit fell for the first time in eight
quarters in July-September hit by sluggish demand in Japan.
    The broader Topix rose 0.8 percent to 1,367.39, and
the JPX-Nikkei Index 400 advanced 0.8 percent to

 (Editing by Shri Navaratnam)