Tuesday June 2, 08:17 AM
Nikkei at 8-mth closing high, techs and autos climb
By Elaine Lies
TOKYO, June 2 (Reuters) - Japan's Nikkei (news) stock average rose
0.3 percent on Tuesday, the second straight day it has closed at
8-month highs, with automakers climbing after General Motors (NYSE: GM - news) ' bankruptcy filing removed much uncertainty about its fate.
Tech shares such as Advantest Corp advanced after
U.S. manufacturing data boosted hopes for the U.S. economy, but
shippers fell as investors locked in profits after recent sharp
gains.
'Economic indicators are now showing improvement from the
worst period but until we see proof of a recovery in company
results, it'll be difficult for the market to rise strongly and
we're still a long way from the next earnings period,' said
Takashi Ushio, head of investment strategy at Marusan Securities.
The benchmark Nikkei gained 26.56 points to 9,704.31,
its highest close since October 7, though it earlier rose as far
as 9,793.47.
The broader Topix edged up 0.1 percent to 913.56.
GM filed for bankruptcy protection on Monday as the Obama
administration took the first steps to try to revive a failed
icon of American industry by extending unprecedented federal
funding and oversight.
'The market is being lifted with the bankruptcy filing of
General Motors seen to have removed a hurdle that blocked
previous advances,' said Takahiko Murai, general manager of
equities at Nozomi Securities.
The Tokyo market had already digested much of GM's bankruptcy
news on Monday after an U.S. administration official confirmed
that a filing was imminent. The Nikkei has risen 1.9 percent over
the past two days.
Resistance is seen at 9,800, where the 52-week moving average
comes in, and then at 9,900 -- a 38.2 percent retracement from an
early June 2008 high of around 14,600, after which the Nikkei
began its tumble that led to a 26-year low just under 7,000 in
late October.
'We really need something new to get us through these levels
and then psychological resistance at 10,000,' Ushio (Berlin: UHO.BE - news) at Marusan
added.
AUTOS POWER HIGHER
Toyota Motor Co and other automakers rose although
most pared gains by the close.
Toyota gained 0.8 percent to 3,850 yen, Honda Motor Co (Paris: JP3854600008 - news) rose 2.2 percent to 2,820 yen and Nissan Motor Co (Berlin: NISA.BE - news) gained 1.7 percent to 594 yen.
The transport sub-index rose 1.2 percent to become
the second-biggest gainer among the sub-indexes.
But Suzuki Motor Corp, which said on Tuesday it had
exposure of of around 72 billion yen ($746 million) to GM
affiliates but no direct exposure to the failed U.S. carmaker,
edged down 0.5 percent to 2,100 yen.
Suzuki (Munich: 603090 - news) said in a statement that the main item was a $400
million debt guarantee to a joint venture car maker in Canada,
and the rest of the exposure was mostly in the form of accounts
receivable.
Advantest (Berlin: VAN.BE - news) and other tech firms climbed on a combination of
growing hopes for the U.S. economy and a sharp rise in the
Philadelphia Semiconductor index.
Advantest rose 4.8 percent to 1,795 yen, Sony Corp
rose 4.3 percent to 2,690 yen and Canon Inc rose 1
percent to 3,180 yen. Tokyo Electron (Frankfurt: 865510 - news) rose 2.3 percent to
4,540 yen.
But gains were checked as Nippon Yusen (Frankfurt: 859849 - news) and other
shippers retreated on profit-taking after recent sharp climbs.
Nippon Yusen shares, for example, gained 11.4 percent during the
period from May 25 to Monday.
'This is just a temporary move for the sector, which will
keep on rising as the economic recovery is confirmed over time,'
said Hideyuki Ishiguro, a supervisor in the investment advisory
section of Okasan Securities.
Nippon Yusen lost 1.7 percent to 471 yen, Mitsui O.S.K. Lines fell 2.9 percent to 698 yen and Kawasaki Kisen (Frankfurt: 862868 - news)
slipped 2.2 percent to 453 yen.
Nomura Real Estate slid 4.8 percent to 1,585 yen
after the company said it plans to raise 64 billion yen ($660
million) by offering new shares.
Trade was active, with 2.6 billion shares changing hands on
the Tokyo exchange's first section compared to last week's daily
average of 2.2 billion.
Advancing shares outnumbered declining issues 908 to 647.
(Additional reporting by Shinichi Saoshiro)
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