Japan's Nikkei share average closed virtually unchanged on Tuesday as foreign buying of exporters and steelmakers was offset by profit-taking on recent gainers such as drug maker Eisai Co. Analysts said the technology sector would probably not react too badly to news after the bell that electronics parts maker Murata Manufacturing Co Ltd had cut its profit forecast for the year to March, citing slow recovery in demand. The Nikkei closed down 0.08 percent at 11,490.43. It hit a four-week closing high on Monday. The TOPIX index of all first-section shares advanced 0.09 percent to 1,155.42.
Large-cap stocks performed even better, with the TOPIX Core 30 index rising 0.68 percent.
"A new inflow of money from abroad has been propping up shares of Japan's top companies since late last week. The same trend is here again today," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
The dollar rose above 105 yen on Tuesday for the first time since early January after US President George W. Bush handed a budget to Congress that forecast a narrowing in the budget deficit.
Honda Motor Co, which last month reported earnings and raised its assumed yen/dollar rate to 103 yen from 104 in the January-March quarter, rose 0.7 percent to 5,470 yen.
Rival Nissan Motor Co rose 1.2 percent to 1,117 yen ahead of its quarterly earnings on Wednesday.
An increased profit outlook from stainless steel maker Nippon Metal Industry Co helped encourage buying in the steel sector, whose subindex rose 1.51 percent.
Nippon Metal added 1.5 percent to 203 yen and industry leader Nippon Steel Corp rose 2.3 percent to 268 yen.
Murata Manufacturing, the world's largest maker of ceramic capacitors used to store electricity in cell phones and other digital goods, rose 2 percent to 5,490 yen before its quarterly earnings announcement.
Eisai fell 2.2 percent to 3,520 yen a day after hitting a four-year closing high, as concerns grew over the recent sharp rise in its share price and after a downgrade by Credit Suisse First Boston.
Trade volume picked up on the main board, with 1.87 billion shares changing hands, up from 1.68 billion on Monday.
Decliners outpaced advancers 841 to 627.
Elsewhere, Internet company Livedoor Co's surprise move to raise its stake in the country's top radio broadcasting firm grabbed the attention of individual investors.
Livedoor increased its stake in Nippon Broadcasting System Inc to 35 percent, posing a threat to a $719 million bid for Nippon Broadcasting by Fuji Television Network, Japan's biggest private TV broadcaster by sales.
Livedoor's shares fluctuated widely before ending up 1.1 percent at 455 yen on the Mothers market for start-ups.
Shares in Nippon Broadcasting System soared 13.5 percent to 6,800 yen on the Tokyo bourse's second section. Fuji TV rose 2.6 percent at 235,000 yen.
Comments
Comments are closed.