Japan Nikkei 225 ^N225 10:02PM 13919.63 +60.49 +0.44%
Tokyo stocks firm by midday, eyes on bank bills
TOKYO, Sept 18 (Reuters) - Tokyo stocks reversed early losses to post moderate gains by midday on Friday, as traders awaited news on last-ditch talks over fixing Japan's ailing banking sector, traders said.
At midday, the key Nikkei stock average was up 60.49 points or 0.44 percent at 13,919.63. December futures were up 40 at 13,840.
''All traders and investors were watching closely over Japan's bank bills. They were closing their positions ahead of an expected agreement,'' said Masayasu Sugawara, manager of equity investment strategy section of Marusan Securities.
The government is keen to do a deal on the touchy topic before Prime Minister Keizo Obuchi leaves for the United States on Sunday.
''The key is what will happen to an injection of public money into the banking sector, and whether the deal will help ease the stance of banks to curb lending,'' Sugawara said.
Tokyo shares opened lower as falls in the New York stock market overnight battered sentiment.
Traders said, however, that sentiment towards Tokyo shares remained bearish amid a series of dismal corporate earnings forecasts.
The unwinding of cross positions ahead of September book closings is also likely to pressure shares, the traders said.
Traders were also cautious over the performance of the New York market, which closed sharply lower overnight as global stocks reeled on fading hopes for U.S. interest rate cuts to ease economic turmoil abroad.
''Serious concerns about a meltdown of global equities could emerge if the Dow fell below 7,500 points,'' said Yasuo Ueki, head of equity department at Nikko Securities.
Other factors in the market.
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