(by Sh. Nakata)

Japan technology shares rose today, but bank shares tumbled led by UFJ after a court ordered it to suspend merger talks with MTFG.

The Nikkei 225 average climbed 1.3 per cent to 11,170.50 by midday while the Topix index gained 0.9 per cent to 1,124.67, the market’s first gains in since last Wednesday.

Technology stocks led Japanese shares higher, but investors were wary ahead of earnings from Japan’s Sony Corp., Canon Inc. and Sharp Corp. after the market closed. Sony posted a surprise profit while Sharp and Canon announced higher earnings.

Seiko Epson Corp., the world’s second-largest print maker, soared 9.4 percent after it raised its full-year earnings forecast following the market close Tuesday.

NEC Electronics Corp. jumped 4.2 percent after the world’s eighth-largest chip maker reported a 43 percent rise in quarterly profit Tuesday.

"It’s still unclear whether U.S. stocks will keep rising. But a bounce on Wall Street at least provided a reason for some investors to buy back oversold stocks," said Masayoshi Yano of Tokai Tokyo Securities.

"Also, upbeat results from companies like Seiko Epson provided an extra lift to market sentiment."

But UFJ Holdings Inc. slid 3 percent after a court on Tuesday ordered the Japanese bank to suspend the sale of its trust bank unit, a potential blow to the ailing group’s planned merger with Mitsubishi Tokyo Financial Group Inc. MTFG rose 1 percent.

Japan’s motoring sub-index rose 1.8 percent, lifted by a 2.4 percent rise in Honda Motor. After the market closed, Honda posted a surprise rise in quarterly profit and raised its outlook for the full year.