Tokyo shares end morning higher on Nasdaq rise, yen recovery hits exporters

Tokyo shares end morning higher on Nasdaq rise, yen recovery hits exporters

	Published : Thu, 25 Jan 2007 04:37 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices ended the morning higher, with the Nikkei index touching a six-year high during the session, inspired by the gains on the tech-heavy Nasdaq overnight and expectations of encouraging earnings announcements in the coming weeks, dealers said.

Utilities and other domestic-demand related issues led the market higher but a recovery in the yen against the dollar pulled exporters lower, capping the Nikkei's rise, they said.

The blue-chip Nikkei 225 Stock Average ended the morning session up 58.98 points or 0.34 pct at 17,566.38, off a high of 17,617.64.

The TOPIX index of all issues listed on the Tokyo Stock Exchange's first section ended the session up 3.99 points or 0.23 pct at 1,742.60, off a high of 1,749.18.

However, decliners beat gainers 945 to 605, with 161 issues flat.

Volume fell to 1.13 bln shares from 1.27 bln shares yesterday morning.

In early trade, the key Nikkei index climbed to a six-year intraday high, breaching the April 2006 record of 17,17.563 points, before coming off again as exporters retreated on the yen's recovery.

'The yen's appreciation hit exporter stocks and capped the Nikkei's gains, but expectations for earnings improvements remained strong and kept domestic-demand related stocks in strong demand,' said Hiroichi Nishi, general manager of equities information at Nikko Cordial Securities.

Power suppliers edged up amid expectations that crude oil prices would remain at relatively low levels, helping reduce their procurement costs, dealers said.

Tokyo Electric Power rallied 90 yen or 2.29 pct to 4,020 as Kansai Electric Power advanced 80 or 2.43 pct to 3,370. Chubu Electric Power climbed 100 yen or 2.75 pct to 3,730.

Marine transport, steels and real estate stocks were also higher. Mitsui OSK Lines ended the session up 30 yen or 2.40 pct at 1,280 while Kansai Kisen rose 33 or 26.83 pct to 156. Nippon Steel advanced 6 yen or 0.87 pct to 698 and Mitsui Fudosan climbed 30 yen or 0.98 pct to 3,080.

Among tech stocks, Sony jumped 1,450 yen or 3.04 pct to 5,770 but Toshiba shed 3 yen or 0.37 pct to 807.

In the Internet sector, Yahoo Japan surged 1,450 yen or 3.04 pct to 49,200, while Softbank, a major stakeholder in Yahoo Japan, gained 80 or 3.13 pct to 2,635. Yahoo Japan yesterday posted a record net profit of 15.17 bln yen in its fiscal third quarter to December, up from 12.65 bln a year earlier.

Softbank owns 41.3 pct of Yahoo Japan as well as a 3.8 pct stake in Yahoo Inc of the US.

Auto stocks were mixed lower, with Toyota Motor down 10 yen or 0.12 pct at 8,140 while Suzuki Motor gained 70 or 2.02 pct to 3,540 following a report the mini-vehicle maker has begun production of its first-ever diesel engine in India.

(1 usd = 120.43 yen)

yumiko.nishitani@xfn.com