Nikkei posts 3rd weekly gain, Nintendo surges 14 pct

Reuters

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    * Nikkei rises 1.5 pct for the week
    * Nissan falls on report it will cut global production,
though
company denies

    By Ayai Tomisawa
    TOKYO, April 19 (Reuters) - Japan's Nikkei rose on Friday as
investors snapped up cyclical stocks, while Nintendo jumped
after Tencent won approval to sell its Switch console in China.
    The Nikkei share average  .N225  ended 0.5 percent higher at
22,200.56 points. For the week, the index rose 1.5 percent to
post its third straight week of gains.
    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 ended up 14 percent.  urn:newsml:reuters.com:*:nL3N2202OF
    Risk appetite was buoyed by overnight gains in U.S. markets,
which were driven by robust economic data, while industrial
stocks rallied after China's commerce ministry 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 bottom,
and that the U.S. and China are making progress in their trade
talks. 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. But analysts
cautioned it is too early to call a sustainable recovery.
    "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 1.4 percent, Okuma  6103.T  soared 2.3 percent, Kawasaki
Kisen  9107.T  advanced 1.2 percent. East Japan Railway  9020.T 
shed 1.1 percent and Tokyo Gas  9531.T  declined 1.7 percent.
    Meanwhile, Nissan Motor  7201.T  dropped 2.2 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
    Later in the day, Nissan said that the report was completely
incorrect and said that its production plan for the current
fiscal year will be disclosed on May 14.  urn:newsml:reuters.com:*:nL3N2210WT
    The broader Topix  .TOPX  gained 0.1 percent to 1,616.93.

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

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