RTRS: Nikkei up 1.1 pct as battered stocks gain ground
The Nikkei share average rose 1.1 percent on Friday as investors picked up battered stocks such as Toyota Motor Corp (7203.T) near the end of the year, but gains were capped by persistent concern over the economy.
In a sign of the impact of the economic downturn, JFE Holdings (5411.T) tumbled more than 6 percent after its unit JFE Steel stepped up planned output cuts in the face of plunging demand and became the first Japanese player to shut a blast furnace.
"The market kept up yesterday's sentiment as currency moves were stable amid market holidays overseas. Past experience also shows that stock prices tend to gain around the year-end and the start of the year on hopes for the coming year," said Yutaka Miura, a senior technical analyst at Shinko Securities.
"But it's not as if investors can keep buying this time around as the outlook for the economy is murky."
The benchmark Nikkei .N225 added 96.27 points to 8,695.77 It rose 1 percent the previous day, when trading volume on the Tokyo exchange's first section hit its lowest since May 2005, excluding half-day sessions.
On Friday morning, 535 million shares changed hands, well below last week's morning average of 898 million.
The broader Topix gained 0.7 percent to 841.47.
The dollar edged up against the yen, providing some support to exporter shares.
U.S. markets were closed on Thursday for Christmas, and they reopen on Friday. In Asia, Hong Kong's stock market remains shut on Friday and will reopen on Monday.
The Tokyo bourse will end the year with a half day of trading next Tuesday and reopen on January 5.
"The only notable market-moving factor until the end of the year will be trade related to window-dressing," said Katsuhiko Kodama, a senior strategist at Toyo Securities, referring to a strategy used to boost the performance of a portfolio near the end of a year or quarter.
The market shrugged off a series of downbeat economic indicators, including data showing industrial production plunged a record 8.1 percent in November from the previous month, while the ratio of jobs available to those looking for work fell to a nearly five-year low.
JFE DROPS, TOYOTA GAINS
Shares of JFE Holdings sank 6.1 percent to 2,325 yen.
