May 11, 2016 / 2:42 AM / 2 years ago

Nikkei rises for third day on weak yen; earnings in focus

* Companies reporting earnings include Toyota, Renesas and Isetan Mitsukoshi

* Japan Display falls after loss forecast

By Ayai Tomisawa

TOKYO, May 11 (Reuters) - Japan’s Nikkei share average rose for a third day in volatile trade on Wednesday morning as the weak yen helped overall sentiment, while index-heavyweight SoftBank Group Corp soared on strong earnings.

The Nikkei rose 0.1 percent to 16,574.06 in midmorning trade after rising as high as 16,814.64 earlier.

The Nikkei’s gains have been trimmed as the yen strengthened against the dollar during Asian trade, with currency levels likely to dominate market direction, traders said.

Exporters were mixed, with Toyota Motor Corp rising 0.1 percent, while both Honda Motor Co and Nissan Motor Co were flat. The dollar climbed as far as 109.38 yen , pulling further away from an 18-month trough of 105.55 set last week. At 02:25 GMT, the dollar stood at 108.67 yen.

With the market in peak earnings season, investors will be waiting for big companies like Toyota to announce their results later in the day. But as investors are prepared for profit declines the impact should be limited, traders say.

“Since the yen’s rise has paused, the market seems to have turned around,” said Masaru Hamasaki, head of market & investment information department at Amundi Japan.

He added that the market seems to have moved past guidance of profit declines. As long as the yen stayed on the weaker side, the Nikkei was expected to recover the 17,000 level soon.

Other companies reporting results include Takata Corp , Renesas Electronic Corp, McDonald’s Holdings Company Japan and Isetan Mitsukoshi Holdings.

SoftBank soared 3.3 percent after it posted an operating profit of 999.5 billion yen for the fiscal year ended March, up 8.8 percent on the year.

Sumitomo Heavy Industries soared more than 14 percent after it said net profit rose 36.1 percent to 33.13 billion yen for the year ended March.

Japan Display Inc tumbled 4.2 percent after the Apple iPhone supplier forecast a net loss of 31.84 billion yen for the year ended March.

The broader Topix dropped 0.1 percent to 1,334.41 and the JPX-Nikkei Index 400 fell 0.1 percent to 12,062.14. (Reporting by Ayai Tomisawa; Editing by Eric Meijer)

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