Nikkei rebounds from 1-month low helped by automakers, machinery firms

* Taiyo Yuden jumps 20 pct after share buyback announcement

* Machinery, auto stocks outperform

* Isuzu Motors soars after its Q3 results cheer investors

By Ayai Tomisawa

TOKYO, Feb 12 (Reuters) - Japan's Nikkei surged on Tuesday,rebounding from a one-month low, as shares of exporters such asautomakers and machinery makers enjoyed strong demand thanks toa weaker yen.

Taiyo Yuden6976.T skyrocketed 20 percent after it saidits net profit for the April-December period jumped 58 percentand raised its dividend payout outlook. It also said it wouldbuy back 2 million of its own shares, or 1.6 percent sharesoutstanding, worth up to 3 billion yen.

The Nikkei share average .N225 rallied 2.6 percent to20,864.21, after closing at the lowest level since early Januaryon Friday. Japanese markets were shut on Monday for a holiday.

The dollar has gained against the yen JPY= over the lastweek, pushing up earnings prospects for machinery, auto andelectronics products makers. It was up 0.2 percent at 110.58 yenon Tuesday. FRX/

Advantest Corp6857.T rose sharply by 5 percent, MazdaMotor 7261.T climbed 2.7 percent and Panasonic Corp6752.T added 3.2 percent and Hitachi Ltd6501.T advanced 1.8 percent.

"Short-term traders such as hedge funds are seen selling theyen and buying stocks," said Yutaka Miura, a senior technicalanalyst at Mizuho Securities.

Most exporters expect the dollar to trade between 105-110yen for the fiscal year through March. A weaker yen boostsJapanese exporters' profits made abroad when repatriated.

Isuzu Motors7202.T soared 7.8 percent after its operatingprofit for April-December increased 17 percent to 144.13 billionyen thanks to strong sales of pickup trucks in Asia.*:nXB0CBKUUT

But Toshiba Corp6502.T tumbled 5.9 percent after theNikkei business daily said that the company is set to slash itsoperating profit forecast for the year through March to between20 billion yen and 30 billion yen, with growing costs in sectorslike energy dragging down earnings from core operations.*:nL3N2050A7

Toshiba said that the Nikkei report was not based onsomething the company announced, but the figure is close to whatthe company estimates.*:nT9N1Y702A

Rental apartment operator Leopalace21 Corp8848.T nosedived 19 percent for a second day, plunging to a daily limitlow of 335 yen after the company posted an extraordinary loss of43 billion yen related to repairs and construction defects.

The company said on Friday that it is moving 14,443residents out of their homes to repair defects found in morethan 1,300 buildings nationwide. Leopalace dived 19 percent onFriday.

The broader Topix .TOPX gained 2.2 percent to 1,572.60. (Editing by Kim Coghill & Shri Navaratnam) ((; 81-3-6441-1875; ReutersMessaging:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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