TOKYO (Reuters) - Japan's Nikkei average rose 1 percent on Friday as machinery shares gained after data showed orders fell less than expected in March, while Sony Corp jumped after it forecast a smaller-than-expected annual loss.
But Mizuho Financial Group Inc slipped after the Nikkei business daily reported the bank was finalising plans to raise around 800 billion yen (5.51 billion pounds), with 600 billion yen likely coming from a common stock offering.
"Hopes for a recovery in Sony's core business helped by restructuring and the view that bad news might have been exhausted for now are buoying the company's stock," said Fumiyuki Nakanishi, a manager at SMBC Friend Securities.
"Despite a series of dismal earnings this time around, a sense of relief has spread in the market that nothing worse will likely come out at least until April-June earnings announcement," he said.
The benchmark Nikkei added 87.29 points to 9,181.02. It fell 2.6 percent the previous day to its lowest close since May 1.
The broader Topix gained 1 percent to 870.90.
Sony shares jumped 4.8 percent at 2,515 yen, after it forecast its operating loss for the year ending in March 2010 would halve to 110 billion yen from a 227.8 billion loss last year, less than a consensus forecast of a 132.9 billion yen loss in a poll of 20 analysts by Thomson Reuters.
Sony also said it would close 14 percent of its 57 manufacturing sites this year -- slightly more than it previously announced -- but it stood by its plan to slash more than 300 billion yen ($3.2 billion) in costs this financial year.
The cost-cutting measures include reducing 16,000 jobs.
Data showed Japan's core private-sector machinery orders fell 1.3 percent in March from the previous month, better than a median market forecast for a 4.5 percent decline.
Shares of industrial robot maker Fanuc Ltd climbed 1.2 percent to 7,660 yen, while Komatsu Ltd advanced 2.5 percent to 1,337 yen.
"The machinery data suggests orders from the manufacturing sector have probably bottomed out due to a halt in the decline in Japan's exports and an end to inventory adjustment," said Tetsuro Sawano, a senior fixed income strategist at Mitsubishi UFJ Securities.
"But machinery orders overall may struggle due to the severe condition of the economy such as labour conditions and weak consumption."
Among decliners, Mizuho fell 1.3 percent to 229 yen.
(Reporting by Aiko Hayashi; Editing by Joseph Radford)