Tokyo shares end morning higher after earnings hopes prompt bargain-hunting

Tokyo shares end morning higher after earnings hopes prompt bargain-hunting

	Published : Mon, 29 Jan 2007 08:00 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices ended the morning session slightly higher, reversing early losses after high expectations about company earnings prompted bargain-hunting, dealers said.

In early dealing, caution about the outlook for the technology sector pressured the broader market, following a profit warning late last week by Advantest and a newspaper report at the weekend that Toshiba may miss its profit target.

The blue-chip Nikkei 225 Stock Average ended the morning 40.66 points or 0.23 pct higher at 17,462.59, off a low of 17,319.37 and a high of 17,479.37.

The TOPIX index of all first-section issues ended the morning 8.71 points or 0.5 pct higher at 1,736.73, off a low of 1,720.09 and a high of 1,738.06.

Gainers were beating decliners 1,116 to 479, with 119 issues flat.

Volume was 1.13 bln shares, up from 907.3 mln Friday morning.

A trader at an asset management firm said: 'Selling pressure was limited, in spite of the Dow's fall Friday and continuing jitters over the technology sector. Higher oil prices may have soothed the fears of market players about profit-taking by Middle Eastern investors, while expectations of positive earnings reports continued to support sentiment.'

Shares in power suppliers and steel makers led the rises, continuing recent trends.

Tokyo Electric Power rose 110 yen or 2.71 pct to end the morning at 4,170 and Kansai Electric Power edged up 130 yen or 3.85 pct to 3,510.

Shares in steel company JFE Holdings rose 190 yen or 2.84 pct to 6,880 after a newspaper reported that its production unit, JFE Steel, and Hyundai Steel of South Korea had begun talks about forming a strategic alliance.

Nippon Steel was up 11 yen or 1.56 pct at 715.

Technology stocks were mostly lower.

Toshiba was down 13 yen or 1.63 pct at 784 after a newspaper reported that the company would likely post a consolidated operating profit of 250 bln yen for the fiscal year ending March, 20 bln less than its initial projection, because of falling prices of its semiconductors.

Tokyo Electron fell 120 yen or 1.39 pct to 8,500.

Advantest rose 20 yen or 0.33 pct to 6,050, despite its having issued a profit warning Friday, after Nomura Securities raised its rating for the stock.

(1 usd = 121.79 yen)

yumiko.nishitani@xfn.com