Nikkei buoyed by cyclical stocks; Nintendo jumps 16 pct

Reuters

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    * Nikkei poised to post 3rd weekly gain
    * Nissan falls on report it will cut global production

    By Ayai Tomisawa
    TOKYO, April 19 (Reuters) - Japan's Nikkei rose on Friday
morning as Wall Street gains raised risk appetite and lifted
cyclical stocks, while Nintendo jumped after Tencent won
approval to sell its Switch console in China.
    The Nikkei share average  .N225  advanced 0.6 percent to
22,223.41 at the midday break. For the week, the index has risen
1.6 percent, poised for a third week of gain.
    The U.S. market rose supported by robust economic data,
while industrial stocks rallied after China's commerce ministry
spokesman said there had been new progress in U.S.-China trade
talks.  urn:newsml:reuters.com:*:nB9N21900T
    "The mood has recovered as the market has been able to
confirm that a slowdown in the Chinese economy has hit the
bottom and the U.S. and China are making progress in their trade
talks as those were the market's main concerns," said Takashi
Ito, an equity market strategist at Nomura Securities.
    China's economy grew at a steady 6.4 percent pace in the
first quarter, data showed on Wednesday, defying expectations
for a further slowdown, as industrial production jumped sharply
and consumer demand showed signs of improvement.
    "While such macro data is improving, U.S. companies started
releasing their earnings, and Japanese companies' earnings will
be in focus later in the month as well," Ito said.
    Machinery, sea transport and electronics stocks
outperformed, offsetting weakness in defensive stocks such as
railroad operators and utility firms.
    Tokyo Electron  8035.T  rose 2.3 percent, Fanuc  6954.T 
added 1.5 percent, Okuma  6103.T  soared 2.3 percent, Kawasaki
Kisen  9107.T  advanced 1.5 percent. East Japan Railway  9020.T 
shed 1.1 percent and Tokyo Gas  9531.T  declined 1.8 percent.
    Shares of Nintendo Co  7974.T  soared after China's Tencent
 0700.HK  won a key approval to begin selling Nintendo's Switch
console in China, the world's largest games market. The video
game maker's shares were up 15.9 percent at midday.  urn:newsml:reuters.com:*:nL3N2202OF
    Meanwhile, Nissan Motor  7201.T  dropped 1.3 percent after
the Nikkei business daily said that it will cut global
production by about 15 percent for the current fiscal year
ending March 2020, which would be the steepest production cut in
more than a decade by the Japanese automaker.  urn:newsml:reuters.com:*:nL3N221076
    The broader Topix  .TOPX  gained 0.3 percent to 1,619.19.

 (Editing by Jacqueline Wong)
 ((ayai.tomisawa@thomsonreuters.com; 81-3-6441-1875; Reuters
Messaging: ayai.tomisawa.thomsonreuters.com@reuters.net))

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