Nikkei rises as European markets strong; gaming sector shines

* Turnover boosted in final minutes from trade related to
MSCI
reshuffle - traders
* Game-related shares surge
* Tokyo Electron gains on share-buyback plan

By Ayai Tomisawa
TOKYO, May 28 (Reuters) - Japan's Nikkei rose on Tuesday as
gains in European markets improved sentiment, while activity in
the gaming sector shot up on hopes for a new gaming title.
Square Enix Holdings 9684.T jumped 7% on heavy volume
after it said it will hold a presentation on YouTube and
Niconico to announce a new Dragon Quest game for mobile
platforms on June 3. Gaming content provider Tose 4728.T
soared 17%, while social game business operator Akatsuki
3932.T surged 5%.
The Nikkei share average .N225 ended 0.4% to 21,260.14.
Turnover on the mainboard was 2.9 trillion yen, but traders
said that about a half of that came about in the last five
minutes before the market close from trade related to
reshuffling of the MSCI Japan Index. MSCI had said that it would
add Advantest Corp 6857.T , GMO Payment Gateway, Itochu
Techno-Slutions 4739.T , Mercari Inc 4385.T and PeptiDream
Inc 4587.T as of Wednesday.
"A flow from funds linked to MSCI was big, but overall
trading was generally thin as investors were on the sidelines
seeking more cues," said Yutaka Miura, a senior technical
analyst at Mizuho Securities.
After U.S. President Donald Trump met Japanese Prime
Minister Shinzo Abe on Monday, he told reporters he expected the
two countries to be "announcing some things, probably in August,
that will be very good for both countries" on trade.
On Tuesday, Japan's Economy Minister Toshimitsu Motegi said
Trump's comment probably reflected his hope for quick progress
in negotiations. Hiroyuki Ueno, a senior strategist at Sumitomo Mitsui Trust
Asset Management, said that as details of Japan-U.S. trade talks
won't be out soon, the market's focus "is still on U.S.-China
trade frictions. Investors are still nervous about the global
economy."
"Economic indicators will likely move the market for the
time being," Ueno said.
Bank of Japan Governor Haruhiko Kuroda said on Monday the
global economic outlook is highly uncertain, and there are
downside risks due to trade friction. Precision machinery and electric machinery shares gained
ground on Tuesday. Casio Computer 6952.T rose 2.4%, Olympus
Corp 7733.T advanced 1.4%, Hitachi Ltd 6501.T jumped 2.7%
and Panasonic Corp 6752.T climbed 1.5%.
Tokyo Electron 8035.T jumped more than 6% before trimming
gains and was up 2.7% for the day after saying it would buy back
up to 150 billion yen of its own shares. The broader Topix .TOPX rose 0.3% to 1,550.99.

(Editing by Shri Navaratnam)