25.04.201403:18:37UTC+00Nikkei reclaims ground as yen sags down, inflation missed projection

Japanese shares advanced on Friday, pumped by a declined yen and after inflation data missed expectation, reinforcing some hopes for further financial easing by the Bank of Japan.

The Nikkei share soared 0.7 percent to 14,498.89 in morning trading action, backing down near two-week high of 14,650 hit on Monday. The index had shed 1 percent on Thursday as the lack of a breakthrough in U.S.-Japan trade talks give some investor a downbeat feeling.

"Yesterday's selling was overdone, and a steady performance on Wall Street overnight set the market on course for a rebound," said Soichiro Monji, chief strategist at Daiwa SB

Investments in Tokyo.

"And although this is not a huge factor, the slightly weaker-than-expected Tokyo CPI data reinforced hopes for further BOJ easing," he said.

Core consumer financial values in Tokyo, a leading indicator of nationwide inflation, rallied 2.7 percent in April from a year earlier to record the largest surge in more than two decades.

But when the effect of a sales tax increase implemented on April 1 is stripped out, Tokyo consumer inflation capped 1.0 percent, signaling that Japan is still some way off the central bank's 2 percent financial value goal.

The dollar inched up 0.1 percent to 102.42 yen, turning away from a one-week low of 102.085 reached on Thursday.

A wait-and-see mood also prevailed ahead of profits guidance from an amount of Japanese firms for the new fiscal year to March 2015.

Nikkei heavyweights Denso, an autoparts maker, and Fanuc, an industrial robot manufacturer, will declare their profits today.

Market participants will focus on individual stocks throughout the profits season rather than the macro picture, said Kyoya Okazawa, head of global equities at BNP Paribas in Tokyo.

Profits declared after Thursday's market close were generally in a positive note.

Fuji Electric shares escalated 6.9 percent after the firm projected a 15 percent hike in operating earnings for the latest financial year after a 51 percent jumped in the past year.

Hitachi Construction soared 2.6 percent after the firm's earnings projection for the year ending in March topped analysts' projections.

But Mitsubishi Motors sank 1.1 percent even after the automaker on Thursday logged record earnings for the year that ended in March and said it expected to reach its midterm yearly operating earnings goal of 135 billion yen in this financial year to March 2015, two years earlier than planned.

Still, Mitsubishi Motors has moved well compare to the broader market so far this month, surging about 1.3 percent compared with a decline of 1.9 percent for the Nikkei.

Mining shares were among the best performers, leaping 2.9 percent. Analysts said an increase in oil financial values fired up the division.

The new JPX-Nikkei Index 400 spiked up 0.79 XX percent to 10,682.30.