Tokyo shares end morning higher, with sentiment buoyed by new economic data

Tokyo shares end morning higher, with sentiment buoyed by new economic data

	Published : Tue, 30 Jan 2007 04:45 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Share prices ended the morning session higher, with buying encouraged by better-than-expected industrial output data, released before the opening bell, which buoyed hopes of higher corporate earnings, dealers said.

However, many investors were waiting to see the latest results of Sony Corp and others companies, which are due to be announced today and over the rest of the week, dealers said.

The blue-chip Nikkei 225 Stock Average ended the morning 68.25 points or 0.39 pct higher at 17,538.71, off a high of 17,558.53.

The TOPIX index of all first-section issues ended the morning 7.55 points or 0.44 pct higher at 1,741.14, off a high of 1,744.61.

Gainers were beating decliners 1,006 to 548, with 150 issues flat.

Volume was 1.08 bln shares, down from 1.13 bln shares yesterday morning.

Industrial output was a seasonally adjusted 0.7 pct higher last month than in November, rising for the third straight month and beating the market's consensus forecast of a rise of 0.2 pct, .

The employment and household spending data for last month fell short of market forecasts, but this appears to have had little effect on share prices, dealers said.

'The market had basically factored-in the view that consumption was not strong,' said Yumi Nishimura, manager of equities marketing at Daiwa Securities.

The paper and pulp sector led the rises this morning, with shares in Oji Paper, which will release its earnings report this afternoon, gaining 18 yen or 2.73 pct at 677.

Steel stocks continued to be in demand amid expectations of further realignment in the industry, dealers said.

Shares in JFE Holdings gained 70 yen or 1.03 pct at 6,870. Yesterday, a newspaper reported that the company's steel-making unit was planning to form a strategic alliance with South Koreas Hyundai Steel. Nippon Steel rose 5 yen or 0.7 pct to 716 after a newspaper reported that the company planned to raise its stakes in two electric furnace steel makers and expand its operational alliances, dealers said.

Auto stocks were mostly higher on hopes that the yen's recent depreciation will help vehicle exporters rack up better-than-expected earnings, dealers said. Honda Motor rose 80 yen or 1.69 pct to 4,820 and Mazda Motor edged up 10 yen or 1.24 pct to 819.

Among other exporters, technology stocks were mixed to lower because the output data for the electronic devices sector last month were disappointing, Nishimura of Daiwa said.

Sony slipped 110 yen or 1.92 pct to 5,620 and Canon shed 80 yen or 1.23 pct at 6,420. Kyocera, in contrast, rallied by 230 yen or 2.09 pct to 11,240 in anticipation of the release this afternoon of the company's latest earnings report, dealers said.

Nintendo extended its gains, having closed at a record high yesterday, still attracting active interest after the company's earnings announcement last week, dealers said. Nintendo was up 450 yen or 1.31 pct at 34,800.

(1 usd = 121.62 yen)

yumiko.nishitani@xfn.com