Tokyo's Nikkei average ended marginally higher on Tuesday, extending gains into a fourth day as a recent upswing in corporate sentiment and higher profit forecasts offset selling pressure from individual investors.
Blue Chip Telecom Company Nippon Telegraph and Telephone Corp (NTT) led the advance, boosted by a positive analyst's report. But tech stocks such as liquid crystal display television maker Sharp Corp and game maker Nintendo Co Ltd.
Lost ground after making gains a day ahead of earnings revisions. After spending most of the day in negative territory, the Nikkei turned up at the close, ending 0.02 percent or 2.20 points higher at 11,281.83.
It had risen almost 300 points on Monday to take its gains to 493 points in three sessions. The broader TOPIX index closed 0.06 percent higher at 1,140.12. Traders said gains were understandably limited after a rapid advance over the past three sessions.
"Yesterday's upswing was really too large. And with the upside somewhat capped overnight in New York and the market back at highs seen in September, this is only to be expected," said Masaru Ueda, head of investment strategy at Marusann Securities.
The Nikkei has just emerged from its longest losing streak in two years. It slid more than 500 points over nine sessions to September 29, when it hit a seven-week closing low of 10,786 amid worries about high oil prices and corporate earnings for the year ahead. But some participants said there was still sporadic selling by individual investors, who bought on margin trading six months ago when the Tokyo market hit a two-and-a-half-year high but are now obliged by trading regulations to return the money borrowed.
NTT finished up 3.17 percent at 456,000 yen following a report by Daiwa Institute of Research that all the bad news for NTT for the time being is already out.
Japan's largest telecomm firm said on Friday it would cut the basic charge for its fixed-line phone service, bowing to pressure from KDDI Corp and Japan Telecom Co, owned by Softbank Corp, who last month unveiled new cheaper services.
Another notable gainer was Oki Electric Industry Co Ltd, which climbed 2.51 percent to 367 yen after the Nihon Keisei newspaper said the electronics parts maker will likely post a hefty profit rise and may resume dividend payments.
Asia's biggest retailer, Aeon Co, ended up 0.16 percent prior to reporting a 54 percent rise in first-half group net profit. Among decline's, profit-taking was pronounced in mining, metal and oil shares, recent favourites on the back of the run-up in oil prices and as metal prices tread multi-year highs.
Nippon Mining Holdings Inc, a major oil refiner and copper smelter, fell 2.72 percent to 572 yen. Sharp, the world's largest maker of liquid crystal display televisions fell 1.75 percent to 1,568 yen.