TOKYO, Oct. 22, 2009 (Kyodo News International) --
(Editors: ADDING DETAILS AND PRICES)
Tokyo stocks rose Friday morning, lifted by a rebound on Wall Street overnight, but gains were capped as investors cautiously await key Japanese corporate earnings reports next week.
The 225-issue Nikkei Stock Average gained 63.26 points, or 0.62 percent, from Thursday's close to 10,330.43. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 0.86 points, or 0.09 percent, to 909.46.
Gainers were led by pulp and paper, construction and sea transport issues. Major decliners included the gas and electricity, rubber product and precision machinery sectors.
Investors cheered strong gains in New York stocks Thursday on stronger-than-expected earnings reports for the July-September quarter such as from McDonald's Corp. (NYSE:MCD) and 3M Co. (NYSE:MMM) A weaker yen, with the U.S. dollar trading near the mid-91 yen level and the euro around mid-137 yen, also gave some support to buying at the outset.
''But there was a lack of further buying incentives to sustain momentum afterward, and investors found it difficult to chase the market higher given uncertainties in Japanese politics under the new government,'' said Hiroichi Nishi, equity manager at Nikko Cordial Securities Inc.
Trading was cautious with investors waiting to see results from the interim Japanese earnings report season, which gets into full swing next week, brokers said.
''So while the market's floor is solid with support from the rise in U.S. stocks and optimism over the global recovery, the upside is limited,'' Nishi said.
On the First Section, advancing issues outnumbered declining ones 824 to 676, with 178 others ending the morning unchanged.
Shippers rose on an advance in the Baltic Dry Index, a measure of shipping rates for commodities. Mitsui OSK Lines gained 10 yen, or almost 2 percent, to 575 yen, while Kawasaki Kisen was up over 1 percent.
Paper makers also climbed, with Oji Paper rising 10 yen, or over 2 percent, to 423 yen and Hokuetsu Kishu Paper jumping over 4 percent.
Among notable decliners, Chubu Electric Power was down 30 yen, or over 1 percent, to 2,060 yen, and Tokyo Gas lost 7 yen, or almost 2 percent, to 356 yen.
Mizuho Financial Group, the morning volume leader, lost 1 yen, or about half a percent, to 176 yen. Value leader Toshiba ended unchanged at 564 yen.
Trading was thin, with volume on the main section coming to 871.84 million shares, down from Thursday morning's 981.92 million.
The TSE's Second Section index was up 4.17 points, or 0.19 percent, to 2,196.51 on a volume of 8.86 million shares. On the Osaka Securities Exchange, the near-term December Nikkei 225 index futures contract was up 70 points to 10,340.
