Nikkei edges up, continues bull run after Greek deal

Tue Nov 27, 2012 3:51am GMT

* Nikkei has risen nearly 9 pct over past two weeks
    * Greek deal provides support but upside limited - trader
    * Domestic-demand driven stocks in favour, profits taken in
exporters
    * Foreigners post pre-market net buy orders for 12th
straight day
    * Toyobo soars 4.7 pct on Daiwa's rating hike

    By Ayai Tomisawa
    TOKYO, Nov 27 (Reuters) - Japan's Nikkei share average edged
up its highest level in over six months on Tuesday, with a deal
on cutting Greece's debt lending support to a bull run that has
seen the market climb almost 9 percent in the past two weeks.
    But in a sign that the run could be losing some momentum,
most big-name exporters succumbed to profit-taking while
domestic-demand driven stocks like banks and real estate firms
found favour.
    Traders said investors, who were underweight Japanese
stocks, continue to pour new money into the market as the yen
has weakened sharply on the expectations that next month's
election will see the advent of a new government determined to
pressure the central bank into more easing.
    Data showed net pre-market buy orders from foreign houses
for a 12th straight day.
    "The Greek deal provides comfort somewhat, but to see
further gains in the market, we need more catalysts such as
further weakening in the yen," said Naoki Fujiwara, a fund
manager at Shinkin Asset Management.
    By the midday break, the Nikkei was up 0.4 percent
at 9,424.91, its fourth straight day of gains.
    Among exporters, Toyota Motor Corp, Honda Motor Co
 and Nikon Corp fell 1.2-1.3 percent. The
stocks have risen more than 10 percent over the past two weeks.
    "Investors are still staying as buyers, but they are
shifting to domestic-demand stocks as they are cautious of the 
steep rise in exporters," said Hikaru Sato, a senior technical
analyst at Daiwa Securities.
    "Foreign buying will likely continue for the time being."
    On Tuesday, the dollar last traded at 82.01 yen,
slightly weakening against the yen. Traders said some investors
unwound long positions in the U.S. dollar built up in recent
weeks.
    Among banks and real estate firms, Sumitomo Mitsui Financial
Group gained 1.0 percent and Mitsui Fudosan 
advanced 1.5 percent.
    Euro zone finance ministers and the International Monetary
Fund clinched an agreement on reducing Greece's debt in a
breakthrough to release urgently needed loans to keep the
near-bankrupt economy afloat. 
    But the market is now expected to focus on the U.S. fiscal
policy standoff and worries about that are expected to
contribute to limited upside potential for equity markets.
    Republicans in the U.S. Congress on Monday called on
President Barack Obama to detail long-term spending cuts to help
solve the country's fiscal crisis, while holding firm against
the income tax rate increases for the wealthy that Democrats
seek. 
    Notable gainers included Toyobo Co which rose 4.7
percent to a 4-1/2 month high yen after Daiwa Securities hiked
the fiber maker's rating by two notches to 'buy' from 'neutral',
saying operations such as its life science business may see a
profit recovery.
    The broader Topix added 0.3 percent to 781.56.