LEAD: Tokyo stocks rise but gains capped by lack of cues before U.S. data.TOKYO, June 22 Kyodo
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Tokyo stocks rose slightly Monday morning amid a lack of major trading incentives, as investors await U.S. economic data such as home sales and durable goods orders later this week.
The 225-issue Nikkei Stock Average Nikkei stock average
Applies mainly to international equities. Price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange started on May 16, 1949. Japanese equivalent of the US Dow. gained 9.76 points, or 0.10 percent, from Friday to 9,796.02 after moving in and out of negative territory. The broader Topix index of all First Section issues on the Tokyo Stock Exchange Tokyo Stock Exchange
Main stock market of Japan, located in Tokyo. It opened in 1878 to provide a market for the trading of government bonds newly issued to former samurai. was up 1.96 points, or 0.21 percent, to 920.93.
Gains were led by warehouse, rubber product and food issues. Major decliners included mining, sea transport and trading house issues.
''There is a lack of direction for the overall stock market and stocks are treading water in a narrow range,'' said Hiroichi Nishi, equity division general manager at Nikko Cordial Securities Inc.
''Interest in buying on dips remains strong amid hopes for a global economic recovery,'' Nishi said. ''But with the lack of major trading cues this week, the market is also facing strong pressure to sell for gains on the upside.''
Eyeing a technical rebound, some investors bought shares as they saw Tokyo stocks as having become more reasonably priced after the Nikkei fell over 3 percent last week from an eight-month closing high above 10,000, logged June 12, brokers said.
But rises in defensive shares such as electricity and pharmaceutical issues were offset by losses in resource-related stocks, which were sold for gains after oil prices fell below $70 a barrel late last week.
A weaker U.S. dollar, falling into the upper 95 yen range, also capped stock gains as it erodes overseas profits for Japanese exporters, the brokers said.
As investors bought defensive stocks, which are less susceptible to an economic downturn, Takeda Pharmaceutical rose 60 yen, or about 2 percent, to 3,810 yen and Kansai Electric Power climbed almost 3 percent.
Warehouse shares also advanced, with Mitsubishi Logistics up 40 yen, or 4 percent, to 1,039 yen and Toyo Wharf and Warehouse rose over 3 percent.
Resource-related shares lost ground, sending trading house Marubeni down 11 yen, or over 2 percent, to 430 yen and Nittetsu Mining down 11 yen, or close to 3 percent, to 413 yen.
Shippers also lost, with Nippon Yusen and Mitsui OSK Lines both down about 2 percent.
On the First Section, advancing issues outnumbered declining ones 1,078 to 501, with 124 others ending the morning unchanged.
Value leader Sumitomo Mitsui Financial Group Sumitomo Mitsui Financial Group (株式会社三井住友フィナンシャルグループ gained 80 yen, or almost 2 percent, to 4,160 yen, while volume leader Mizuho Financial Group Mizuho Financial Group, Inc. (株式会社みずほフィナンシャルグループ remained unchanged at 250 yen.
Trading volume on the main section came to 947.44 million shares, down from Friday morning's 1,255.37 million.
The TSE's Second Section index was up 7.62 points, or 0.35 percent, to 2,158.92 on a volume of 42.99 million shares. On the Osaka Securities Exchange Osaka Securities Exchange (OSE)
Established after World War II, one of the three major securities markets in Japan. , the near-term September Nikkei 225 index futures contract was up 30 points to 9,800.