Tokyo shares end morning higher on Dow gains, upbeat corporate earnings prospect

Tokyo shares end morning higher on Dow gains, upbeat corporate earnings prospect

	Published : Wed, 24 Jan 2007 04:08 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices ended the morning session higher, with sentiment supported by a rebound on the US stock markets as oil prices advanced, dealers said.

The mood also remained upbeat amid expectations that Japanese companies will report positive earnings results, they added.

At the break, the blue-chip Nikkei 225 Stock Average was 113.55 points or 0.65 pct higher at 17,552.12, off a high of 17,551.93.

The broader TOPIX index of all first-section issues was up 11.21 points or 0.65 pct at 1,741.97, off a high of 1,745.00.

Gainers beat decliners 995 to 559, with 158 issues flat.

Volume rose to 1.27 bln shares from 1.04 bln yesterday morning.

Mitsushige Akino, chief fund manager at Ichiyoshi Management, said the market held its bullish tone as investors are expecting an upward revision of earnings forecasts for the fiscal year ending March 2007.

'Considering the softer yen and the relatively stable US economy, there has been increasing expectation of upward revisions in the earnings forecasts of many companies,' he said.

Appetite for steelmakers was strong driven by positive earnings expectations and hopes for a further consolidation in the industry, Akino said.

'After next week (when the results season begins in earnest), share prices are likely to surpass last year's high,' he said.

Sanyo Electric Co Ltd was up 4 yen or 2.1 pct at 196 after the Nihon Keizai Shimbun reported that GE Capital Corp and Shinsei Bank Ltd were studying the possibility of acquiring its stake in Sanyo Electric Credit Co Ltd, a consumer finance company.

Sanyo Electric Credit jumped 185 yen or 9.3 pct to 2,170.

Kirin Brewery Co Ltd gained 26 yen or 1.4 pct to 1,860 after a report that the brewer plans to spend 20 bln yen to expand its production capacity by installing infrastructure capable of producing 30 types of beer and beerlike beverages at a plant in Shiga Prefecture.

Resona Holdings Inc rose 8,000 yen or 2.4 pct to 345,000 after the banking group said it will buy back about 570 bln yen worth of debt that it owes the government, in a bid to lighten reliance on public debt.

Among steelmakers, Nippon Steel Corp was up 7 yen or 1.0 pct at 702, Sumitomo Metal Industries rose 6 or 1.2 pct to 522, Kobe Steel advanced 13 or 3.2 pct to 426, JFE Holdings climbed 250 or 3.9 pct to 6,610 and Tokyo Steel Manufacturing was up 36 yen or 2.0 pct at 1,791.

Oil shares benefited from the rebound in crude oil prices. A barrel of light, sweet crude rose 2.47 usd, or 4.7 pct, to settle at 55.04 usd per barrel on the New York Mercantile Exchange.

Inpex Holdings rose 22,000 yen or 2.4 pct to 955,000, Nippon Oil gained 20 or 2.5 pct to 821 and Cosmo Oil advanced 9 or 1.9 pct to 482.

(1 usd = 121.65 yen)

kaori.kaneko@xfn.com