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Nikkei rises for second day, Panasonic outperforms

Published 04/27/2011, 09:37 PM
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* Nikkei's near-term resistance seen at 9,822 - analyst

* Panasonic jumps after job cut report

By Ayai Tomisawa

TOKYO, April 28 (Reuters) - Japan's Nikkei average rose for a second day on Thursday after U.S. stocks gained following the Federal Reserve's decision to hold short-term interest rates near zero, while investors were keen to see earnings reports later in the day from major firms including Honda and Nomura .

Shares of Panasonic , which also reports on Thursday, outperformed the market and rose more than 2 percent after the Nikkei business daily reported that the electronics maker plans to cut about 40,000 jobs to streamline its operations. A source later confirmed the job cut plan.[ID:nL3E7FR48S]

"Investors want to see more earnings that are scheduled for after the market closes. The market may stay strong all day, but trading may be subdued," said Yumi Nishimura, a senior market analyst at Daiwa Securities.

Trade was also expected to stay thin as Japan enters the Golden Week holidays. Markets are closed on Friday as well as next Tuesday through Thursday.

The benchmark Nikkei average was up 1 percent at 9,784.07 in midmorning trade, while the broader Topix advanced 0.8 percent to 846.80.

Analysts said the Nikkei may trade between 9,600 and 9,800 on Thursday, with near-term resistance seen at 9,822, its intraday high marked on April 1.

Panasonic jumped 2.1 percent to 995 yen.

"The report is positive for the stock price, but investors will await the outcome of the company's earnings results before making further bets," said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities.

Commodity-related shares gained after gold rose to a record high of almost $1,530 an ounce on Wednesday while oil prices also rose.

Trading house Mitsubishi Corp added 0.9 percent to 2,181 yen, Japan Petroleum Exploration advanced 0.9 percent to 3,895 yen and Sumitomo Metal Mining rose 1.0 percent to 1,440 yen.

On Wednesday, all three major U.S. stock indexes extended gains after comments from Fed Chairman Ben Bernanke at his press conference, where he reiterated the Fed's stance that inflation was a transitory problem related largely to commodity price pressures. (Reporting by Ayai Tomisawa; Editing by Chris Gallagher)

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