Nikkei gains 1.9 pct as yen helps, Nissan jumps 02/25 05:24 PM



(Updates to midmorning)
TOKYO, Feb 26 (Reuters) - Japan's Nikkei average rose 1.9 percent on Thursday as Nissan Motor (NSANF:$3.1500,$-0.4500,-12.50%) <7201.T> jumped on news that it plans smaller output cuts, helping ease market fears about slumping demand, while a weaker yen boosted other exporters.
But Advantest Corp (ADTTF:$12.6619,$0.0000,0.00%) <6857.T> slid after the company warned it faces a record $804 million annual loss, while drugmaker Daiichi Sankyo (DSKYF:$19.5933,$0.4433,2.31%) <4568.T> dropped after U.S. regulators said Indian generic drugmaker Ranbaxy Laboratories <RANB.BO>, in which Daiichi holds a controlling stake, had falsified data.
"The market continues on a recovery track after U.S. trade was relatively calm. There's also the softer yen," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.
"News about Nissan's smaller production cuts also indicates that we may be getting out of a state of crisis, though a lot will still depend on economic stimulus measures by the U.S. government."
The benchmark Nikkei <.N225> added 138.59 points to 7,599.81, after ending the previous day up 2.7 percent. On Tuesday, it fell as low as 7,155.16 -- within sight of a 26-year low just under 7,000.
The broader Topix <.TOPX> climbed 1.2 percent to 754.88, after earlier in the week hitting its lowest close since December 1983.
The Dow Jones industrial average <.DJI> shed 1.1 percent on Wednesday as homebuilders and big manufacturers fell after data showing sales of previously owned U.S. homes plunged much more than expected in January. [ID:nN25481263]