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Nikkei holds steady after 6-day rise,high-techs gain

Published 07/22/2009, 09:32 PM
Updated 07/22/2009, 09:40 PM

* High-techs climb after Nasdaq gains for 11 days in a row

* Profit-taking sets in following Nikkei's 6-day rise

TOKYO, July 23 (Reuters) - Japan's Nikkei share average was little changed on Thursday as high-tech firms such as Kyocera Corp climbed after gains in U.S. tech shares while some investors booked profits after the Nikkei's six-day rise.

NTT DoCoMo Inc, Japan's biggest mobile phone operator, dipped after the Nikkei business daily said the company's operating profit likely fell 16 percent in April-June.

Overall, investors were cautious as Japan's second quarter corporate earnings announcement season is kicking off shortly.

"It is true that Japanese shares still lag behind a rise in global shares. But investors prefer to lock in profits now as they jitterly await corporate report cards," said Masayoshi Yano, senior market analyst at Meiwa Securities. The benchmark Nikkei was down 4.20 points at 9,718.96 after ending at 9,723.16 the previous day, its highest close since July 3. Market analysts said the market could be due for correction as the Nikkei has gained 7.4 percent in a six-day run through to Wednesday.

The broader Topix was barely moved at 906.31.

On Wall Street, the Nasdaq rose on Wednesday for the 11th straight day, buoyed by solid profits from Apple Inc and Starbucks Corp, while disappointing bank results and declining energy shares weighed on the broader market.

Japan Tobacco Inc dropped 3.6 percent to 262,300 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.

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The Democrats want to hike tobacco taxes to cut the number of smokers, and remarks to this effect by a Democratic Party official in May sent Japan Tobacco shares tumbling 7 percent the next day. It has lost almost 13 percent in July.

The cigarette maker said on Wednesday it would buy unlisted Brazilian tobacco leaf supplier Kannenberg & Cia Ltda and Kannenberg, Barker, Hail & Cotton Tabacos Ltda to help it secure a stable supply of tobacco leaves.

NTT DoCoMo fell 0.6 percent to 136,600 yen.

High-tech shares and computer makers gained as investors took their cue from the gains in the tech-heavy Nasdaq.

Electronics parts maker Kyocera advanced 1.7 percent to 7,130 yen. Electronics conglomerate NEC Corp jumped 4.3 percent to 313 yen, while Fujitsu Ltd rose 1.5 percent to 533 yen. (Reporting by Rika Otsuka; Editing by Hugh Lawson)

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