Nikkei rises, helped by financial results, but low Sony, Honda results up

* Financial results outperform US yields up

* Sony plunges to 8.9%, most shares traded by business figure

* Honda tumbles after disappointing earnings

By Ayai Tomisawa

TOKYO, Feb 4 (Reuters) – Japan's Nikkei advanced on Monday morning, boosted by financial stocks backed by strong US economic data, although disappointing results from Sony and Honda Motor limited its gains.

The average Nikkei stock rose 0.5% to 20,897.85 at the midday break.

Financial companies, looking for higher yields, outperformed after US yields rose according to a US Department of Labor report, showing that non-farm wages exceeded expectations and posted the largest increase since February 2018.

Insurers grew by 1.9% and banks by 1.3%, Dai-ichi Life Holdings by 2.4% and Mitsubishi UFJ Financial Group by 1.1%.

Another good news, the US manufacturing index ISM rose more than the consensus forecast in January, despite the trade war with China, which limited the growth of the manufacturing sector.

Analysts said, however, that Japanese investors were disappointed by the October-December surge in profits of Japanese companies, which were disappointed by some manufacturers influencing their forecasts.

Investors were expecting a recovery of the current period "but for now, they expect the results of the year because it would be difficult to see a recovery in the period January-March," said Nobuhiko Kuramochi , strategist at Mizuho Securities.

On Friday, 503 companies out of 1,308 Topix companies, excluding financial companies, whose operations end in March, announced their quarterly results and their net profits fell by 18% on average compared to the previous year. previous year, according to Mizuho Securities.

Sony Corp plunged up to 8.9% to hit a six-week low of 5,011 yen and was the most traded stock in terms of revenue. After the market closed on Friday, the company announced a profit below expectations, as its previously flourishing gaming activity subsided.

Macquarie Securities reduced Sony's outperformance rating to "neutral" and lowered its target price from 7,750 yen to 5,800 yen, citing greater uncertainty about the rise in gaming profits and business-related risks consumer electronics.

Honda Motor Co dropped 4% after announcing a reduction in balances on its popular SUV CR-V crossover, which had lowered its operating profit by 40% in October-December, while costs related to the currency quality and volatility also weighed on its net income.

Factory automation equipment maker Keyence Corp was up 4.8% after an 11.4% increase in net profit between April and December.

The wider Topix gained 1.1% to 1,582.38.