Nikkei up but yen’s rise limits gain; eyes on G20

* Market thin as investors nervous before G20 meet outcome

* Further stock gains blocked as yen hovers near 15-yr high

* Support at 13-week moving average at 9,383

By Aiko Hayashi and Chikafumi Hodo

TOKYO, Oct 22 (BestGrowthStock) – Japan’s Nikkei average rose 0.4
percent on Friday in a rebound after two days of losses, but
investors were wary of pushing the market higher before seeing
the outcome of a Group of 20 meeting and with the yen hovering
near a 15-year high on the dollar.

G20 finance officials started their formal meetings on Friday
with nations from the developing world and Japan dismissing U.S.
proposals to set limits on current account balances in an effort
to defuse tensions over currencies. [ID:nTOE69L00U]

“The focus from now on will be how the currency markets move
after the G20 meeting, and investors want to wait and see what
happens,” said Koichi Nosaka, a market analyst at Securities
Japan, Inc.

“But media reports about strong first-half earnings prospects
for individual companies are lending support to investor
confidence, though worries about second-half earnings remain.”

The benchmark Nikkei (.N225: ) finished the morning session up
0.4 percent at 9,410.71, rebounding after marking its lowest
close in three weeks on Thursday.

The the broader Topix (.TOPX: ) advanced 0.4 percent to 823.65.

The yen edged up to 81.20 (JPY=: ) against the dollar, still
close to a 15-year high of 80.84 hit on EBS on Wednesday.

Analysts were watching to see if the Nikkei manages to end
the week above its 13-week moving average, now at 9,383, which
has served as solid support since September.

Resistance looms at its 26-week moving average, now at 9,630,
which has held down the Nikkei for about five months.

Shares of Sumitomo Mitsui Financial Group (8316.T: ) gained 1.7
percent to 2,413 yen after Japan’s No. 3 bank said it plans to
list its shares on the New York Stock Exchange through American
Depositary Receipts (ADRs) on Nov. 1, joining rivals as it steps
up its expansion overseas. [ID:nTOE69K072]

Shares of Hitachi Ltd (6501.T: ) jumped 2.3 percent to 355 yen
after the Nikkei business daily said that Japan’s biggest
electronics conglomerate was set to report an operating profit
for April-September of more than 200 billion yen, beating its
forecast of 170 billion yen.

Hitachi’s earnings were supported by strong economic growth
in emerging markets, resulting in higher demand for items such as
digital consumer electronics, the paper said.
(Additional reporting by Antoni Slodkowski)

Nikkei up but yen’s rise limits gain; eyes on G20