Nikkei up 0.5 pct, driven by autos; gains limited

Thu Nov 12, 2009 1:51am GMT
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* Nikkei up 0.5 pct, resistance strengthening near 10,000

* Carmakers gain after brokerage report, Fuji Heavy climbs

* Gains centre on short-covering, techs strong

By Elaine Lies

TOKYO, Nov 12 (Reuters) - Japan's Nikkei stock average edged up 0.5 percent on Thursday, buoyed by gains on Wall Street on the view that the global economic recovery is looking a little more certain, with carmakers up after a positive brokerage report. FamilyMart Co (8028.T: Quote, Profile, Research), Japan's third-largest convenience store operator, gained nearly 3 percent after a source familiar with the matter said the company was in talks to buy smaller rival am/pm Japan Co. [ID:nBNG460546]

The S&P 500 and the Dow both closed at 13-month highs on Wednesday after upbeat data for a top homebuilder, while Chinese factory output came in at a 19-month high, both pointing to a strengthening global economy.

"Even though fears of the U.S. economy dipping again are receding, the biggest boosts are the signs that no stimulus measures will be revoked until a recovery is really confirmed," said Kenichi Hirano at Tachibana Securities.

"Japan's shares should be reflecting this more, but foreign investors' views of the country appear to be changing so that it's now just one country among others in Asia. And if you think that way, you might as well buy something like Vietnamese shares, because they'll grow."

The benchmark Nikkei .N225 rose 45.70 points to 9,917.38, while the broader Topix .TOPX, which is not as tech-heavy, was flat at 872.40.  Continued...

 
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