CORRECTED-Nikkei gains on upbeat earnings; futures steady after BOJ eases further

(Corrects percent change in morning trade to 2.2%, not 1.2% in
third para)
SYDNEY, April 27 (Reuters) - Japanese shares rose on Monday
as some better-than-expected earnings lifted market sentiment
even as underlying worries about the outlook tempered overall
demand.
The gains came just before the Bank of Japan's widely
anticipated decision to further expand monetary stimulus.
The benchmark Nikkei average .N225 advanced 2.2% to
19,678.87 by the midday break, during which the BOJ announced
measures to ease corporate funding strains, including increased
buying of commercial paper and corporate bonds. The Nikkei futures JNMcm1 showed a muted response.
Advantest Corp 6857.T jumped 8.2% after the chip-testing
equipment supplier forecast a 14.2% year-on-year increase in
operating profit for the April-June quarter. "Even with difficult external conditions, Advantest expects
steady growth in test demand and aims to sustain and expand
market shares in 5G milliwave and high-end memory areas," said
Jefferies analyst Masahiro Nakanomyo.
Fanuc Corp 6954.T surged 11.1% even though the factory
automation company didn't disclose the full-year profit guidance
and gave a forecast for the April-September half instead, saying
the impact from the coronavirus lockdowns at major cities will
materialize from March. Denso Corp 6902.T shed 3.1% after the auto parts maker
slashed earnings forecast for the year ending March
2021. The broader Topix .TOPX added 1.1% to 1,436.86, with all
but two of the 33 sector sub-indexes on the Tokyo exchange
trading higher.
Highly cyclical sea transport .ISHIP.T , non-ferrous metals
.INFRO.T and electric machinery .IELEC.T were the top three
performing sector subindexes on the main bourse.
The volume of shares traded on the main board valued at only
843 billion yen by the midday recess - well below the normal
value.
The market's volatility index .JNIV , considered a fear
gauge based on option pricing, was down 9.3% to 35.1.
Traders said many investors stayed on the sidelines ahead of
key policy meetings of the U.S. Federal Reserve and the European
Central Bank this week.
Bucking the overall market, the banking sector .IBNKS.T
came under pressure after S&P revised the outlook to stable from
positive on Japan's three megabanks.
Mitsubishi UFJ Financial Group (MUFG) Inc 8306.T and
Sumitomo Mitsui Financial Group (SMFG) Inc 8316.T dropped 0.2%
and 0.5%, respectively.
Elsewhere, the index of Mothers start-up shares .MTHR rose
2.3%.