TOKYO, May 20 (Reuters) - Japan's Nikkei share average
rose on Tuesday, with a pause in the yen's rally supporting
automakers and other exporters, while resilience on Wall Street
despite the U.S. sovereign downgrade buoyed overall sentiment.
At the same time, uncertainty at the start of the three-day
Group of Seven meetings of finance ministers and central bank
chiefs in Canada later in the day makes it "difficult for
traders to move," said Maki Sawada, a strategist at Nomura.
Finance ministers will strive for unity on non-tariff issues
at the gathering, but may have trouble reaching consensus with a
Trump administration intent on pushing allies to serve U.S.
interests.
The Nikkei rose 0.6% as of 0148 GMT, while the
broader Topix added 0.3%.
Investors worry that U.S. officials may push for a weaker
dollar as part of tariff negotiations.
Trade tensions with China are also far from resolved, in
spite of a recent rapprochement.
"This is not an environment where we can be complacent about
the Sino-U.S. trade relationship," said Nomura's Sawada.
"Developments are likely to continue to swing stock
markets."
Automakers were among the top performers as some weakening
of the yen boosted the value of overseas revenues. Toyota ( TM )
added 1.2% and Mazda ( MZDAF ) jumped 5%.
As a sector, car manufacturers and suppliers
gained 1.4% to be the second-best performer among the Tokyo
Stock Exchange's industry groups. Non-ferrous metals
was the top gainer with a 2.1% advance.
Sony ( SONY ) gained 3.2%.
The yen strengthened as far as 144.665 per dollar
on Monday, extending a rally that began a week ago when the
currency was at 148.455, but has since stabilized.
Strength in chip-related shares was another factor pulling
the Nikkei higher, with Advantest ( ADTTF ) gaining 2.8% and
Tokyo Electron ( TOELF ) advancing 1.8%.