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UPDATE1: Tokyo stocks rise on recovery hopes, investors await Toyota earnings.

TOKYO, June 10 Kyodo


Tokyo stocks rose Friday, buoyed by a rebound in U.S. stocks overnight and renewed hopes for a quicker-than-expected recovery of Japanese businesses from the March quake and tsunami, while investors awaited the earnings forecast of Toyota Motor Corp.

The 225-issue Nikkei Stock Average rose 47.29 points, or 0.50 percent, from Thursday to 9,514.44. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 4.43 points, or 0.54 percent, to 817.38.

Nearly all 33 sectors on the TSE gained ground, with the mining sector leading gainers, followed by the fishery and forestry, and the oil and coal products sectors. Decliners were the warehouse, rubber products, pharmaceutical and the electric machinery sectors.

While giving back some gains on profit-taking before the weekend, the Nikkei index advanced for the fourth consecutive day, as U.S. stocks snapped a six-day losing streak on easing worries over the U.S. economy after trade data showed its exports hit a record high in April, brokers said.

''There were many negative factors like the U.S. weekly jobless claims remaining high, but investors took cues from the improvement in the U.S. trade balance, with exports hitting a record high,'' said Tsuyoshi Segawa, equity strategist at Mizuho Securities Co.

Automakers advanced while investors awaited Toyota Motor's earnings forecast for the fiscal year from April released at the market close, amid heightened expectations of a quick recovery of Japan's supply chains that were disrupted by the March 11 disaster.

''Investors held high hopes that Toyota's outlook would underscore the faster-than-expected recovery of supply chains,'' Segawa said, adding other exporters may have advanced on such recovery hopes as they have shared the same problem.

Toyota Motor said it expects its parent-only domestic output to rise to 3.03 million units in fiscal 2011 from the year before.

Masayoshi Okamoto, equity strategist at Jujiya Securities Co., said, however, stocks could face some pressure in the longer run as corporate performance may not return even after the output returns to normal.

''Many overseas companies have replaced Japanese firms while they were forced to take a long leave after the quake, so there is a question about whether there will still be a seat available (for the Japanese firms) even after the output returns to normal,'' Okamoto said.

Toyota Motor climbed 30 yen, or 0.9 percent, to 3,300 yen, while Honda Motor advanced 27 yen, or 0.9 percent, to 2,985 yen. Olympus rose 70 yen, or 2.8 percent, to 2,614 yen.

Hitachi fell 5 yen, or 1.1 percent, to 46 yen, after it said Thursday it expects its group net profit in fiscal 2011 to fall 16 percent from the previous year to 200 billion yen.

On the First Section, rising stocks outnumbered declining ones 1,002 to 490, with 164 others remaining unchanged.

Trading volume on the main section rose to 2,416.80 million shares from Thursday's 1,859.74 million.
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Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Jun 13, 2011
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