Nikkei gains as techs, banks, trading houses rise

Tue Nov 10, 2009 5:14am GMT
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* Nikkei up on short-covering, buoyed by Wall St gains

* But 10,000 resistance seen strong, next target 10,200

* Techs up after gains by U.S. peers

By Elaine Lies

TOKYO, Nov 10 (Reuters) - Japan's Nikkei average rose 1.3 percent on Tuesday, buoyed by Wall Street's gains as interest in risk-taking rose, with Mitsubishi Corp (8058.T: Quote, Profile, Research) and other trading firms up reflecting climbs in oil, gold and other commodities prices.

Tokyo Electron (8035.T: Quote, Profile, Research) and other chip-related shares climbed following gains by their U.S. peers, after the Dow rose to a 13-month high and other Wall Street indexes gained after the Group of 20 pledged to keep aid flowing to the world economy, encouraging investor appetite for risk.

But analysts said long-term uncertainty was likely to keep a lid on gains in Japan.

"Things are definitely getting brighter for the short term, but over the longer term there's quite a lot of uncertainty that's preventing rises in Japanese stocks," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

"Will there be more government bond issuance? Will the yen continue to rise? And what sort of policies can we expect from the government?"  Continued...

 
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