Nikkei gains 0.4 pct, led by carmakers and techs

Thu Nov 12, 2009 2:13am GMT
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TOKYO, Nov 12 (Reuters) - Japan's Nikkei stock average edged up 0.4 percent on Thursday, buoyed by Wall Street gains on the view that global recovery is looking more certain, with Honda Motor Co (7267.T: Quote, Profile, Research) and other carmakers up after a positive brokerage report.

FamilyMart Co (8028.T: Quote, Profile, Research), Japan's third-largest convenience store operator, gained 2.4 percent after a source familiar with the matter said the company was in talks to buy smaller rival am/pm Japan Co. [ID:nBNG460546]

In thin trade, the benchmark Nikkei .N225 rose 43.57 points to 9,915.25 by the midday break. The broader Topix .TOPX, which is not as tech-heavy, edged down 0.1 percent to 871.75.

The Nikkei has recently been hit by falling trading volume, with the market lacking the energy to punch above resistance at 10,000 -- just about where the Nikkei's 25-day moving average comes in -- without fresh trading factors.

Carmakers rose after Goldman Sachs raised ratings on Fuji Heavy Industries (7270.T: Quote, Profile, Research), maker of Subaru cars, to "buy" from "neutral" and added Honda Motor Co (7267.T: Quote, Profile, Research), already rated "buy", to its Conviction List.

Analyst Kota Yuzawa cited larger-than-expected guidance hikes with first-half results based on cost cuts and improved production volume.

Shipping firm Nippon Yusen (9101.T: Quote, Profile, Research) fell 2.5 percent to 319 yen after the Nikkei business daily said it would likely raise about 150 billion yen in its first public share offering in 40 years. [ID:nT369500]

Fellow shipper Kawasaki Kisen K.K. (9107.T: Quote, Profile, Research) lost 3.6 percent to 318 yen. (Reporting by Elaine Lies; Editing by Chris Gallagher)

 
 
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