* Nikkei up 0.5 pct on earnings/economy hopes
* 7&i shares jump on solid earnings
By Hideyuki Sano
TOKYO, Jan 13 Japanese shares bounced back from
two-week lows on Friday, with retailer Seven & i Holdings
surging after posting strong earnings.
The Nikkei share average rose 0.5 percent in morning
trade, bouncing back from two-week low hit on Thursday hit after
U.S. President-elect Donald Trump's news conference produced no
details on his stimulus plans.
The broader Topix index rose 0.3 percent to
"Economic fundamentals are supporting share prices. The
economy looks pretty good and we could see a recovery in
earnings," said Soichiro Monji, chief strategist at Daiwa SB
Domestic economic sentiment has also shown a recovery.
A government survey published on Thursday of service-sector
workers, closely watched for their proximity to real-time
economic activities, showed their sentiment staying at 1
Analysts' forecasts for Japanese companies' profits outlook
have been improving in the last few months thanks to the yen's
decline following Trump's surprise election victory.
According to I/B/E/S, analysts' forecast of Japanese
companies' profits rose 3.6 percent over the past three months.
The earning season will begin in earnest later this month
but retailers and some other firms with different financial year
period are already starting to announce their results this week.
Retailer Seven & i Holdings jumped 8 percent after
it posted strong earnings, putting Japan's second biggest
retailer on course for a record annual profit.
Fast Retailing, the operator of Uniqlo casual
clothing chain, rose 1.2 percent after it posted its biggest
quarterly operating profit in two years as a cost-cutting drive
and gains from a weaker yen helped offset tepid demand at home.
On the other hand, Seibu Holdings dropped 4.7
percent following the news that U.S. private equity firm
Cerberus Capital Management launched a selldown of up
to $308 million in railway firm.
(Editing by Simon Cameron-Moore)