* Investors shifting to buy domestic-demand stocks * Investors take profits in exporters * Foreigners still buyers - analyst By Ayai Tomisawa TOKYO, Nov 27 Japan's Nikkei share average edged up on Tuesday, as investors bought domestic-demand shares while they took profits on exporters which have sharply gained on expectations that a weak yen will boost their earnings. Amid investor caution over the fast pace of gains that has seen the benchmark climb more than 8 percent in the past two weeks, profit-taking is natural, analysts said. The Nikkei was up 0.4 percent to 9,425.40, after ending at its highest closing level since April 27 on Monday. The index has added 8.4 percent in the past two weeks. Exporters, which have advanced on hopes that a weak yen will lift their earnings, were down, with Toyota Motor Corp, Honda Motor Co and Nikon Corp all dropping between 0.7-0.9 percent. The stocks have risen 15-19 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 a steep rise in exporters," said Hikaru Sato, a senior technical analyst at Daiwa Securities. "Foreign buying will likely continue for the time being." Local demand-related stocks such as banks and real estate shares attracted buying, with Mitsubishi UFJ Financial Group adding 1.1 percent, Sumitomo Mitsui Financial Group gaining 1.4 percent and Mitsui Fudosan advancing 1.5 percent. Traders said that investors, who were underweight Japanese stocks, continued to pour new money in to the Japanese market on the back of the weakening yen. On Tuesday, foreigners posted net buy orders for Japanese stocks for a 12th day. The yen has come under pressure on expectations the Bank of Japan will be pushed towards more drastic easing, after the country's opposition party, tipped to win next month's election, campaigned for radical monetary stimulus to beat deflation. But on Tuesday morning, the dollar last traded at 81.99 yen , slightly weakening against the yen. Traders said some investors unwound long positions in the U.S. dollar built up in recent weeks. Meanwhile, the euro hit a one-month peak against the U.S. dollar after officials said euro zone and International Monetary Fund officials had reached a deal on reducing Greece's debt. The euro jumped to $1.2992, according to Reuters data, 0.1 percent higher on the day and its best showing since late October. "It is positive that there is a progress in the ongoing euro-zone issues, but the impact on the stock market should be limited," said Hiroichi Nishi, general manager at SMBC Nikko Securities, adding that investors will continue holding their breath while they await for signs for movement in talks over the U.S. budget wrangle. U.S. lawmakers are expected to resume negotiations this week on a compromise that would avoid roughly $600 billion in automatic tax increases and spending cuts that are due to hit in January. Market players said the Nikkei was likely to trade between 9,350 to 9,450 on Tuesday. The broader Topix added 0.3 percent to 781.66.
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