Japanese shares edge up on stronger-than-expected GDP data

* Nikkei up 0.28%, Topix dips 0.04%
* Japan Q1 GDP rose, contrary to contraction expectations
* But gains limited as data showed lacklustre domestic
demand
* Exporters edge higher as yen weakens to 2-week low vs
dollar

By Shinichi Saoshiro
TOKYO, May 20 (Reuters) - Japan's Nikkei share average edged
higher on Monday as domestic economic growth in the first
quarter proved firmer than expected, although market gains were
limited as the data also pointed towards lacklustre domestic
demand.
The Nikkei .N225 was up 0.3% at 21,309.25 as of 0159 GMT.
Data released on Monday showed Japan's gross domestic
product (GDP) grew at an annualised 2.1% in the first quarter
versus expectations of a 0.2% contraction. However, the surprise
expansion was mostly caused by imports declining faster than
exports.
"The GDP surprised for the better and that's the main driver
behind the stock market's gains. Those who bet on weak data were
caught wrong-footed and reversing their positions," said Takashi
Hiroki, chief strategist at Monex Securities.
But the GDP data "is not encouraging, with private
consumption and capex declining and exports rising only because
weak domestic demand depressed imports," he said, adding that
Monday's market advance "is purely technical, few are buying
because they think the economy is doing well."
Exporters gained as the yen JPY= weakened to a two-week
low against the dollar.
Toyota Motor Corp 7203.T added 0.15%, Komatsu Inc 6301.T
gained 0.25%, Canon Inc 7751.T rose 1.1% and Nintendo Co
7974.T 1.25%.
Technology firms, on the other hand, sagged after U.S.
counterparts slipped on Friday due to continuing trade tensions
between the United States and China.
Tokyo Electron 8035.T shed 2.8%, Sony Corp 6758.T fell
1.7% and Toshiba Corporation 6502.T dropped 1.1%.
Paper manufacturing company Hokuetsu Corporation 3865.T
soared 10.7% after forecasting a 62.9% operating profit surge
for the year ending March 2020. TYK Corporation 5363.T sank 17.5% after the maker of heat
resistant materials forecast its operating profit for the
current financial year will likely decline by 30.3%.
Of Tokyo's 33 subindexes, 20 were higher, led by real estate
.IRLTY.T , while iron and steel .ISTEL.T led iners.
The broader Topix .TOPX dipped 0.04% to 1,553.60.

(Editing by Richard Borsuk)