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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: chirodoc who wrote (1837)	4/27/1999 12:47:00 AM
From: borb	Respond to of 3902

TOKYO, April 27 (Reuters) - Tokyo's benchmark Nikkei 225 average hovered around the 17,000 line throughout the morning on Tuesday, encouraged by a stable dollar-yen rate and hopes Japan may do more to revive its ailing economy after a Group of Seven (G7) meeting on Monday. The index was also supported by gains in Tokyo high-tech stocks after gains in the technology-weighted Nasdaq index overnight. ''Stronger-than-expected personal computer shipments in the U.S. contributed to optimism about the continued growth of the high-tech sector,'' said Robin Cosgrove, yen equity salesman at Dresdner Kleinwort Benson (Asia). The Nikkei average was up 77.86 points or 0.46 percent at 16,996.37 at midday. June Nikkei futures <0#JNI:> were up 40 points at 17,030. But traders warned the market's rise might be limited, as some players were keen to take profits above the 17,000 level. ''Ahead of the 'Golden Week' holidays it will be hard for the Nikkei to rise smoothly past 17,000,'' said Mitsuhiro Nakano, strategist at Daiwa Institute of Research. Traders suggested the market needed a reason for its next spurt, and said such a reason could be provided if the earnings results of Sony Corp , due out on Wednesday, were better than expected. A total of 299.08 million shares changed hands on the first section of the Tokyo Stock Exchange, against 255.98 million shares on Monday morning. Traders did not rule out fresh economic stimulus steps by Japan being on the agenda when Prime Minister Keizo Obuchi and President Bill Clinton hold summit talks next week. Obuchi said on Tuesday it was important for Japan to implement ''various measures'' already in place. But one trader at a foreign brokerage said, ''We are expecting something to happen. U.S. pressure would give Obuchi a good excuse to actually do something in the face of domestic opposition.'' Other factors in the market: Traders said issues in the information technology and communications sector were attracting buying interest. Traders said bank shares were being bought to cover short positions built up since last October. Sakura Bank Ltd was up 36 yen or 8.63 percent at 453 on heavy volume, while Daiwa Bank Ltd , Bank of Tokyo-Mitsubishi Ltd and Industrial Bank of Japan Ltd were also higher. Marusan Securities Co Ltd was down 35 yen or 4.76 percent at 700 after it announced on Monday a parent current profit for the year to March 31, 1999, of 353 million yen, down from the previous year's 2.21 billion yen. Other gainers on earnings included Kanebo Ltd , while hopes for good results also boosted Aiwa Co Ltd . Sasaki Glass Co Ltd was ask-only at 60 yen after it said on Monday it filed for court protection from creditors at the Tokyo District Court with total liabilities of 46.65 billion yen as of February 28. The stock will be delisted from the Tokyo Stock Exchange on July 27. Broader indexes were all higher. The TOPIX index (.TOPX - news) of all first-section shares was up 6.17 points or 0.46 percent at 1,350.01. The Nikkei 300 was 1.66 points or 0.62 percent higher at 270.30. The second section index was up 5.99 points or 0.34 percent at 1,753.55. Advancers outnumbered decliners 617 to 496, with 178 issues unchanged.