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Nikkei holds near 2-wk closing high, techs gain

Published 07/22/2009, 10:50 PM
Updated 07/22/2009, 10:56 PM
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* High-techs climb after Nasdaq gains for 11 days in a row

* Caution sets in following Nikkei's 6-day rise

* Investors await domestic corporate earnings results

By Rika Otsuka

TOKYO, July 23 (Reuters) - Japan's Nikkei share average edged up 0.1 percent on Thursday, holding near a two-week closing high as tech firms such as Kyocera Corp gained after U.S. bellwethers such as Apple Inc posted solid quarterly earnings.

But investors were cautious, with some preferring to book profits after a six-day rising streak for the Nikkei and as Japan's corporate earnings announcement season moves into higher gear. Mobile phone operator KDDI Corp is scheduled to announce after the close.

"Japanese shares are still lagging a rise in global shares. But investors are preferring to lock in profits now as they nervously await domestic corporate earnings reports," said Masayoshi Yano, senior market analyst at Meiwa Securities. The benchmark Nikkei rose 12.81 points to 9,735.97 after marking its highest close since July 3 the previous day. The Nikkei has gained more than 7 percent in a six-day run through to Wednesday, following a rally in U.S. shares on upbeat earnings results.

The broader Topix firmed 0.1 percent to 907.46.

"The Nikkei's recent rally owes more to overseas factors than domestic ones. As such, a fall in U.S. shares could easily push it down below 9,500," said Norihiro Fujito, general manager of investment research and information division at Mitsubishi UFJ Securities.

High-tech shares and computer makers advanced as investors took their cue from gains in the tech-heavy Nasdaq, which rose on Wednesday for an 11th straight day buoyed by solid profits from Apple and Starbucks Corp.

Electronics parts maker Kyocera advanced 2.9 percent to 7,210 yen. Electronics conglomerate NEC Corp jumped 4.3 percent to 313 yen, while Fujitsu Ltd rose 3.4 percent to 543 yen.

Japan Tobacco Inc dropped 3.5 percent to 262,600 yen, and one market analyst cited growing concerns about the chances of the opposition Democratic Party of Japan taking power in an Aug. 30 election.

Toyo Tanso Co Ltd soared 13.1 percent to 4,320 yen after Credit Suisse lifted its rating on the maker of carbon materials to "outperform" from "underperform" citing an expected increase in demand for its products used in light-emitting diodes, silicon wafers and solar cells.

Trade was light, with 918 million shares changing hands on the Tokyo exchange's first section compared with last week's morning average of 1 billion.

Declining shares narrowly outnumbered advancing ones, 762 to 714. (Reporting by Rika Otsuka; Editing by Edwina Gibbs)

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