To: Gottfried who wrote (9903 ) 5/29/2003 3:27:25 AM From: StanX Long Respond to of 95663 Japan's Nikkei Ends at Two-Month High 36 minutes ago Add Business - Reuters to My Yahoo! story.news.yahoo.com TOKYO (Reuters) - Japan's Nikkei average closed at a two-month high on Thursday, led by Matsushita Electric Industrial Co Ltd and other exporters after the yen slipped to a four-week low and Wall Street stayed on an upward path. "The yen's drop was the driving force behind today's rally," said Hiroaki Kuramochi, head of equities at Credit Lyonnais. "Mutual funds were buying a wide range of shares." The Nikkei closed up 1.71 percent or 141.18 points at 8,375.36, its highest finish since March 24. The TOPIX index gained 1.44 percent to a three-month high of 834.12. Exporters led the rally after the dollar earlier climbed above 119 yen for the first time in nearly four weeks, raising hopes that profits earned abroad by Japanese corporations would get a boost when they are repatriated back into yen. Fanuc Ltd, Japan's top maker of industrial robots, surged 5.37 percent to 5,300 yen, consumer electronics giant Matsushita jumped 4.65 percent to 1,080, and office equipment and camera firm Canon Inc put on 3.13 percent to 4,950 yen. Sony Corp (news - web sites) perked up 3.33 percent to 3,100 yen after the world's largest consumer electronics maker on Wednesday unveiled an all-in-one games device, the "PSX," and said it plans to boost sagging electronics sales with a push into flat panel TVs. Volume picked up to 1.04 billion shares on the first section, the highest daily total so far this week and compared with 899 million on Wednesday. Advancers outpaced decliners 954 to 422. Small and mid-cap stocks also joined the uptrend, with Sanrio Co Ltd soaring 8.58 percent to 481 yen after the Sankei Shimbun newspaper highlighted the increasing popularity of the company's "Hello Kitty" character goods in the United States. In contrast, Sumitomo Mitsui Financial Group (SMFG) led banks lower after struggling builder Fujita Corp said it was planning to issue 30 billion yen of preferred shares to a SMFG unit after Fujita fell into negative net worth. "I believe that some people will have been surprised by this (Fujita news), and this appears to be working as a negative for the share price," said Yukiko Ohara, bank analyst at Credit Suisse First Boston. Ohara rates banks as "underweight." SMFG lost 4.9 percent to a one-week low of 194,000 yen. Other megabanks also fell, with Mizuho Financial Group down 3.33 percent at 69,600 yen and UFJ Holdings off 1.75 percent at 112,000 yen. Mitsubishi Tokyo Financial Group was the exception, rising 0.45 percent to 450,000 yen.