Nikkei rises after JPMorgan; Kawasaki Heavy gains

* Nikkei heads toward 18-mth high above 11,400 hit last week

* Kawasaki Heavy jumps on report of Vietnam train approval

* Eyes on reaction to China data in currencies, Asian stocks

By Aiko Hayashi

TOKYO, April 15 (BestGrowthStock) – Japan’s Nikkei average rose 0.7
percent on Thursday, helped by exporters after
stronger-than-expected results from companies such as JPMorgan
Chase & Co (JPM.N: ) boosted Wall Street.

Kawasaki Heavy (7012.T: ) climbed 3.5 percent after a report
that the Vietnamese cabinet has approved plans to construct a
$55.9 billion high-speed rail line connecting the northern and
southern parts of the country using Japan’s bullet train
technology.

“There were some concerns earlier this week about earnings of
U.S. financial companies, including JPMorgan, and the market is
now receiving a lift after the actual report and strong gains in
financial shares overnight,” said Yumi Nishimura, deputy general
manager at Daiwa Securities Capital Markets.

“But worries that high-tech exporter shares are getting
overheated are putting a lid on further gains in the broader
market.”

Dow components Intel Corp (INTC.O: ) and JPMorgan Chase & Co
paced the U.S. market after both posted better-than-expected
results.

Japan’s benchmark Nikkei (.N225: ) rose the previous day, with
chip-linked exporters boosted after Intel’s results, which came
after the bell on Tuesday on Wall Street.
[ID:nN1382801] [ID:nN14181674]

JPMorgan (JPM.N: ) stock jumped 4 percent after the
second-largest U.S. bank reported quarterly profit that beat
forecasts, as investment banking earnings gained and loan losses
slowed.

The S&P 500 (.SPX: ) pushed past 1,200 for the first time in 18
months, while the pan-European FTSEurofirst 300 (.FTEU3: ) hit an
18-month closing high.

On Thursday, the benchmark Nikkei (.N225: ) gained 78.58 points
to 11,283.48 by the midday break, heading closer to an 18-month
high above 11,400 hit last Monday.

The broader Topix (.TOPX: ) added 0.8 percent to 998.85.

The Nikkei’s relative strength index (RSI) is edging up
toward 70 after rising to a high of 76 last week. Anything from
70 is considered overbought.

After the morning close in Tokyo, data showed China’s annual
gross domestic product growth accelerated in the first quarter to
11.9 percent from 10.7 percent in the fourth quarter of 2009.
Economists had forecast growth of 11.5 percent. The CPI in March
fell 0.7 percent from February, while the PPI rose 0.5 percent.
[ID:nBJL002018]

Investors will be looking to the reaction to the data in
currency and other Asian markets.

Shares of Kawasaki Heavy rose to 267 yen. It, Mitsubishi
Heavy Industries (7011.T: ), Mitsubishi Corp (8058.T: ) and Sumitomo
Corp (8053.T: ) are among Japanese firms that have been trying to
persuade Vietnam to adopt Japan’s technology, the Nikkei paper
said.

GS Yuasa Corp (6674.T: ) climbed 2.8 percent to 688 yen after
it said its joint venture with Mitsubishi Motors Corp (7211.T: )
would spend 37.5 billion yen ($402.2 million) to build its third
lithium ion battery plant in Japan, anticipating growing demand
for electric vehicles. [ID:nTOE63D06J]

Investment Basics

(Reporting by Aiko Hayashi; Editing by Edwina Gibbs and Joseph
Radford)

Nikkei rises after JPMorgan; Kawasaki Heavy gains