Japanese shares up 0.92% by lunch

Japanese shares up 0.92% by lunch


Tokyo: Japanese share prices rose 0.92% in morning trade Tuesday as worries about the outlook for the US economy receded following last week’s better-than-expected US jobs data, dealers said.

They said a softer yen boosted exporter shares as investors returned to their desks after a long weekend.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index of leading shares added 157.05 points to 17,222.09 by the lunch break.

The broader Topix index of all first-section shares edged up 13.53 points or 0.82% to 1,670.44.

Gainers outnumbered decliners 1,275 to 340 with 89 issues unchanged.

Turnover rose to 843 million shares from 721 million on Friday morning. Japanese financial markets were closed on Monday for a public holiday.

Dealers said Friday’s surprisingly solid non-farm payrolls report eased concerns about the impact on the US economy of the problems in the subprime mortgage sector for risky borrowers.

“But investors seemed to refrain from buying aggressively as they waited for the release of earnings of Japanese retailers this week as well as the US reporting season," said Hiroaki Hiwada, strategist at Toyo Securities.

Japan’s leading department store operator, Takashimaya, was due to report earnings for the six months through August later in the day.

In the US, aluminium giant Alcoa Inc. was to kick off the third-quarter reporting season later Tuesday.

Leading gainers included property and banking companies. Mitsui Fudosan climbed 100 yen or 3.0% to 3,400 and Sumitomo Realty & Development gained 150 yen or 3.6% to 4,280.

Among banks, Mitsubishi UFJ Financial rose 26 yen or 2.2% to 1,213 and Sumitomo Mitsui Financial Group added 29,000 yen or 3.0% to 999,000.

Olympus Corp advanced 60 yen or 1.2% to 5,130 yen following a report that the maker of digital cameras and medical endoscopes is expected to post a 46% rise in interim pretax profit to a new record high.

Other technology shares were higher after the tech-heavy Nasdaq composite index gained overnight.

Sony rose 50 yen or 0.9% to 5,840, Canon climbed 20 yen or 0.3 % to 6,430 and Sharp was up 15 yen or 0.7% at 2,060.