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TMCNet:  LEAD: Tokyo stocks mixed as exporter gains trimmed before U.S. jobs data+

[November 06, 2009]

LEAD: Tokyo stocks mixed as exporter gains trimmed before U.S. jobs data+

(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Nov. 6_(Kyodo) _ (EDS: ADDING DETAILS AND PRICES) Tokyo stocks ended mixed Friday as initial gains by exporters on renewed U.S. recovery optimism were later trimmed when investors shifted to the sidelines ahead of key U.S. jobs data.

The 225-issue Nikkei Stock Average gained 71.91 points, or 0.74 percent, to 9,789.35 from Thursday's one-month closing low. The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed at a one-month low of 874.01, down 0.95 point, or 0.11 percent.

Gainers were led by glass and ceramics, precision machinery and electrical machinery issues. Major decliners included the rubber product, real estate and insurance sectors.

The benchmark Nikkei climbed as much as about 1.4 percent at one point in the morning, after a 10-month low in U.S. initial jobless claims lifted the Dow Jones index back to the 10,000 level on Wall Street and raised hopes of upbeat results in U.S. October employment data due out later Friday, brokers said.

The renewed recovery optimism particularly lifted export-oriented shares in Tokyo, such as electronics makers. But the market turned top-heavy when buying ran its course amid the lack of fresh incentives, with the Topix index falling into negative territory.

"As trading resumed after the midday break, investors became more inclined to move to the sidelines to wait for the U.S. jobs data and selling to unwind or adjust positions kicked in," said Hiroichi Nishi, equity manager at Nikko Cordial Securities Inc.

A continued slump in banking and other financial stocks, which have a greater impact on the Topix than the Nikkei, dragged the broader index down.

"Jitters about an anticipated tightening of capital requirements for banks continue to keep investors away from buying financial shares as they wait for details expected by the end of the year," said Yumi Nishimura, a senior equity market analyst at Daiwa Securities SMBC Co. "This weighed down the Topix index." An announcement by life insurer T&D Holdings that it may issue new shares to repay debt added to concerns about fundraising by financial companies which may dilute per-share value. T&D plunged 255 yen, or almost 11 percent, to 2,115 yen.

Among major banks, Mizuho Financial Group shed 2 yen, or over 1 percent, to 179 yen, while Aozora Bank fell almost 3 percent.

However, electronics maker NEC jumped 25 yen, or about 10 percent, to 273 yen after announcing Friday morning its first public stock offering in six years, with an aim of raising 134.0 billion yen by the end of this month.

Other notable exporter gainers include Hitachi, up 16 yen, or over 5 percent, to 304 yen. Sanyo Electric, the day's volume leader, rebounded from the previous day's sharp decline to gain 3 yen, or almost 2 percent, to 175 yen.

Value leader Toyota Motor lost 60 yen, or almost 2 percent, to 3,520 yen after its earnings results Thursday provided little buying incentive, brokers said.

On the First Section, declining issues outnumbered advancing ones 1,115 to 453, with 118 others remaining unchanged.

Trading volume on the main section came to 1,882.77 million shares, down from Thursday's 1,936.71 million.

The TSE's Second Section index was down 7.19 points, or 0.34 percent, to 2,131.94 on a volume of 118.73 million shares. On the Osaka Securities Exchange, the near-term December Nikkei 225 index futures contract was up 80 points to 9,780.

(c) 2009 Kyodo News International, Inc.

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