27 July 2005, 10:40   Nikkei up, Canon falls ahead of results

Tokyo's Nikkei share average rose 0.87 percent on Wednesday, led by Advantest Corp. after its profit recovery from the previous quarter encouraged investors, while a fall in the yen bolstered the auto sector. But Canon Inc., the world's top maker of copiers and laser printers, fell ahead of its quarterly earnings later in the afternoon. Other companies due to report earnings after the close on Wednesday include Honda Motor Co. Ltd., Sharp Corp. and Seiko Epson Corp. The Nikkei was up 102.45 points at 11,840.41 as of 0500 GMT. If it finishes at this level, it will be the first close above 11,800 since April 8. The broader TOPIX index was up 0.79 percent at 1,198.38. "We see signs of improving sentiment here as investors now tend to look at the positive side of any news, like Advantest's earnings," said Kenichi Hirano, strategist at Tachibana Securities. "They took in their stride Advantest's poor year-on-year numbers and instead welcomed a healthy recovery quarter-on-quarter in orders, sales and profits," he said. Advantest, the world's largest maker of semiconductor testing devices, jumped 2.6 percent to 8,710 yen after announcing quarterly earnings a day earlier. It posted a 47.5 percent fall in group operating profit to 11.77 billion yen ($104.7 million) in April-June from a year earlier, but the profit was up 60 percent from the previous quarter. A fall in the yen to 112.70 per dollar -- around the level it was at before China revalued its currency last week -- also buoyed auto makers and other exporters. The dollar had dipped below 110 yen soon after China's revaluation of its yuan currency. A weaker yen is a boon for Japanese exporters as it makes their goods more price-competitive abroad and boosts dollar-denominated revenues when they are brought home.

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