Nikkei rises after European shares support mood; Tokyo Electron surges

* Tokyo Electron gains 6% on share-buyback plan
* Electric machinery makers outperform

By Ayai Tomisawa
TOKYO, May 28 (Reuters) - Japan's Nikkei rose on Tuesday as
gains in European markets improved sentiment, while shares of
Tokyo Electron surged after it announced a share buyback.
The Nikkei share average .N225 rose 0.4% to 21,272.46 at
the midday break.
Turnover on the mainboard on Monday was the lowest since
December 2014, with fewer traders in the market as U.K. and U.S.
markets were closed for holidays.
For Tuesday, turnover was expected to be thin again.
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 surged 1.7%, Olympus
Corp 7733.T rose 1.1%, Hitachi Ltd 6501.T soared 2.5% and
Panasonic Corp 6752.T advanced 1%.
Tokyo Electron 8035.T jumped more than 6% before trimming
gains and was up 2.7% at midday break after saying it would buy
back up to 150 billion yen of its own shares. The broader Topix .TOPX rose 0.3% to 1,552.32.

(Editing by Richard Borsuk)