Japanese shares close slightly higher

Japanese shares close slightly higher
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First Published: Wed, Sep 26 2007. 01 28 PM IST
Updated: Wed, Sep 26 2007. 01 28 PM IST
AFP
Closing
Tokyo: Japanese share prices closed 0.21% higher on Wednesday, 26 September, as some buyers emerged hoping for an end to weeks of political uncertainty with a new government in place, dealers said.
With Wall Street offering no clear lead overnight, the stock market cautiously welcomed Prime Minister Yasuo Fukuda’s new government despite some doubts about his appetite for economic reform, they added.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index of leading shares edged up 34.01 points to 16,435.74.
The broader Topix index of all first-section shares gained 9.19 points or 0.59% o 1,576.02.
Morning
Tokyo: Japanese share prices were mixed in subdued morning trade Wednesday, 26 September, as the market waited for clearer signals from new Prime Minister Yasuo Fukuda on his economic policies, dealers said.
With Wall Street offering no clear lead overnight, the market reacted cautiously to the start of the new government under Fukuda, who has vowed to focus on rural areas left out of Japan’s economic recovery, they said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index of leading shares barely changed, ending the morning session down 1.77 points, or 0.01%, at 16,399.96. The broader Topix index of all first-section shares gained 3.45 points or 0.22% at 1,570.28.
Gainers beat decliners 993 to 607, with 106 issues unchanged.
Turnover rose to 877 million shares from 813 million on Tuesday morning.
New Prime Minister Yasuo Fukuda’s choice of cabinet had little impact on the market, with top economy and finance ministers staying in their posts.
“The selection of the Cabinet members is solid and mainly in line with investor expectations,” said Hiroichi Nishi, a general manager of equities at Nikko Cordial Securities.
Investors generally exercised caution ahead of the release Friday of closely-watched data on industrial output and consumer prices and the Bank of Japan’s Tankan business sentiment survey next Monday.
Toshiba rallied 39 yen or 4% to 1,025 yen on a report that it will jointly develop a diagnostic bio-chip with applications in the medical, environmental and food industries together with 10 other companies, including Canon and Toray Industries.
Canon ended the morning flat at 6,090 while Toray edged up nine yen or 1% to 892.
Hino Motors climbed 27 yen or 3.1% to 901 yen after the truck-making subsidiary of Toyota Motor upgraded its profit outlook thanks to a weaker yen and brisk sales overseas.
Shares of Toyota Motor slipped 40 yen or 0.6% to 6,600 yen.
Banks were generally higher on hopes that they will escape significant losses from US mortgage and credit market problems.
Sumitomo Mitsui Financial Group rose 14,000 yen or 1.7% to 826 as Mizuho Financial Group added 12,000 yen or 1.9% to 633,000.
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First Published: Wed, Sep 26 2007. 01 28 PM IST
More Topics: Stocks | Japan | Topix | Nikkei | Global Markets |