WSJ: Tokyo Shares End Slightly Higher As FOMC Awaited
By Brad Frischkorn
TOKYO--Tokyo stocks posted a modest rise Monday as investors were reluctant to take strong positions ahead of the upcoming U.S. Federal Open Market Committee meeting, with selling in financial shares such as Nomura Holdings nearly offsetting buying in technology exporters such as Kyocera and Advantest.
The Nikkei Stock Average edged up 6.36 points, or 0.1%, to 9533.75 following the prior session's 0.2% fall.
The Topix index of all the Tokyo Stock Exchange First Section issues slipped 1.76 points, or 0.2%, to 788.48 with 17 of 33 subindexes ending in negative territory.
Trading volume totaled 1.94 billion shares, below the 2 billion mark for the first time in three sessions.
The major indexes rose at the start, getting a lift from a stronger U.S. dollar following Friday's U.S. non-farm payroll data figures, and from weekend data showing China's industrial output rose a surprisingly strong 10.1% on year in November.
"The data were all good, but in a week packed with important events such as the Dec. 11-12 U.S. FOMC meeting, Nikkei futures' expiration--not to mention the Sunday lower house election--investors are understandably somewhat reticent," said Tachibana Securities market analyst Kenichi Hirano.
A senior dealer at a major bank in Tokyo estimated that the opposition Liberal Democratic Party must win the Dec. 16 election by a landslide, perhaps two-thirds of the Lower House, to significantly move the currency markets.
Fast Retailing dominated the heavyweight gainers, rising 1.5% at Y19,420. Tech exporter Advantest also added 3.9% at Y1,108, while Kyocera rose 0.8% at Y7,700.
China-related shares were also higher, especially earlier, helped by China's industrial output figures. Komatsu added 0.3% at Y1,897.
But the buying was almost totally offset by profit-taking in other sectors. Among financials, Nomura Holdings dropped 2.3% at Y345. Daiwa Securities also lost 2.3% at Y381.
Among individual share movers, wafer-maker Sumco settled bid-only and limit-up at Y680, up 17%, despite the company's downgrade of its full fiscal year group earnings forecast Friday. Investors perceived the cut as meaning all the negatives on the stock have been exhausted, traders said. Shin-Etsu Chemical also added 0.9% at Y4,920.
Plant engineering concern Chiyoda Corp. closed down 2.6% at Y1,205 after a rating cut Friday by Merrill Lynch Japan Securities to Underperform from Neutral. Merrill cited a likely fall in orders for large plants as electricity and gas companies--major consumers of liquefied natural gas--are aiming to procure LNG through the spot market and attempt to control prices by also using shale gas and floating LNG.
December Nikkei 225 futures closed down 20 points, or 0.2%, at 9540 on the Osaka Securities Exchange.
Write to Bradford Frischkorn at bradford.frischkorn@dowjones.com
