Nikkei hits 1-wk closing high on Spain plan, earnings

* Nikkei gets additional late boost from Asian shares

* First target 10,700, then 25-day MA near 11,000-analysts

* CSK soars on stronger-than-expected profit forecast

* Nissan down after earnings forecast lags consensus

* Sony forecasts oper jump but outlook short of consensus

By Elaine Lies

TOKYO, May 13 (BestGrowthStock) – Japan’s Nikkei average rose over 2
percent to a one-week closing high on Thursday after Spain
outlined measures to cut its deficit, easing fears the Greek debt
crisis could spread in Europe and boosting exporters such as
Advantest (6857.T: ).

Shares of companies with upbeat earnings and outlooks found
favour as well, with information services company CSK Holdings
(9737.T: ) surging more than 14 percent after it forecast a jump in
profit this financial year.

Concerns that Greece’s debt crisis could spill over to other
euro zone nations with high borrowing levels eased on Wednesday
as Spanish Prime Minister Jose Luis Rodriguez Zapatero said
Madrid would slash civil service pay by 5 percent this year,
freeze it in 2011 and cut 13,000 public sector jobs.
[ID:nLDE64B0SK]

The news sent European and U.S. stocks (Read more about the stock market today. ) higher and boosted
Asian stocks as well, with rises in Hong Kong and Seoul shares
helping the Nikkei in turn, market players said.

“The euro zone problems had really weighed on the market, and
reassurance after the Spanish announcement has allowed investors
to turn their eyes to things like earnings and economic
indicators for the first time in days,” said Toshiyuki Kanayama,
a market analyst at Monex Inc.

“That said, we can’t know yet if these measures will work,
and some continuing concern is still shifting funds into gold,
sending it to quite high levels.”

The benchmark Nikkei (.N225: ) was up 2.2 percent or 226.52
points to 10,620.55, its highest close since last Thursday. The
broader Topix (.TOPX: ) added 1.6 percent to 947.90.

Gold held steady near a record high reached in the previous
session and Asian shares on the MSCI ex-Japan index
(.MIAPJ0000PUS: ) rose 2.1 percent. [GOL/]

The Nikkei’s relative strength index (RSI) rose to 44.3, its
highest in a week. Anything from 30 and below is considered
oversold.

Kanayama said the first target for the Nikkei would be
10,700, which is not only a level at which the Nikkei had
consolidated several times earlier this year but also marks the
upper limit of a gap opened when it fell sharply last week.

Others said the Nikkei was likely to move swiftly higher.

“Japanese corporate earnings have also been good. This
apparent improvement in earnings should mean a correction in
stock prices,” said Mitsuo Shimizu, deputy general manager at
Cosmo Securities.

“The Nikkei could find its way up to its 25-day moving
average around 11,000 in the short-term.”

Just after the close, Sony Corp (6758.T: ) forecast a jump in
annual operating profit, but its outlook fell short of market
expectations. [ID:nTOE6490A4]

Its shares closed up 4.1 percent to 3,165 yen.

EXPORTERS EXUBERANT

Exporter shares gained to help push up the overall market.
Advantest Corp jumped 3.2 percent to 2,342 yen and TDK Corp
(6762.T: ) advanced 4.6 percent to 6,210 yen.

CSK Holdings shot up 14.1 percent to 494 yen. The company
estimated annual operating profit at 10 billion yen, beating an
average of 7.7 billion yen from two analysts polled by Thomson
Reuters I/B/E/S.

Shares of Tokyo Electron (8035.T: ) jumped 7 percent to 6,080
yen after the chip equipment maker forecast it would swing to
profitability in the year to March 2011, citing an expected
increase in capital investment by semiconductor makers.

Tokyo Electron expects to book an operating profit of 79
billion yen for the year, compared with an operating loss of 2.2
billion yen the year before.

But Nissan Motor Co (7201.T: ) slipped 1.3 percent to 735 yen
after Japan’s No.3 automaker said it expects growth in emerging
markets and launches of new models such as its Micra compact to
provide only a modest boost to profits this year.

Nissan forecast an annual operating profit of 350 billion
yen, up 12 percent from the 311.6 billion yen it made last year
but lagging a consensus forecast of 411 billion yen in a poll of
22 analysts by Thomson Reuters I/B/E/S. [ID:nTOE64A065]

Trade was moderate, with 2.3 billion shares changing hands on
the Tokyo exchange’s first section, down from the 3.1 billion, a
four-month high, marked last Friday and the lowest volume this
week.

Advancing shares beat declining ones by more than 3 to 1.

Stock Today
(Additional reporting by Aiko Hayashi; Editing by Joseph
Radford)

Nikkei hits 1-wk closing high on Spain plan, earnings