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LEAD: Tokyo stocks inch up, profit-taking caps market upside+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, June 2_(Kyodo) _ (EDS: ADDING INFO) Tokyo stocks ended Monday morning slightly higher, supported by calm in the foreign exchange market and easing worries over the course of the U.S. economy, but market upside was limited on profit-taking following recent sharp gains. The 225-issue Nikkei Stock Average rose 7.46 points, or 0.05 percent, from Friday to 14,346.00. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 6.22 points, or 0.44 percent, to 1,414.36. Trading was directionless amid a lack of domestic trading clues. The Tokyo market got off to a firm start, with high-tech issues luring buying in tandem with Friday's rises in their U.S. counterparts following the release of strong earnings results from computer giant Dell Inc. But the upward momentum soon fizzled, as profit-taking gained momentum following sharp gains late last week that brought the key Nikkei index to a four-and-a-half month high on Friday. The Nikkei rose a total of 629.10 points, or 4.6 percent, in the past two trading days. "There is a sense of caution about the fast pace of recent rises," in Tokyo shares, said Hiroichi Nishi, equities chief at Nikko Cordial Securities Inc. At the same time, the stock market was underpinned by "recent money shifts from the bond market to the stock market" amid lingering woes over inflation and the view that the U.S. economy is not as bad as once feared, Nishi said. Brokers said calm in the foreign exchange market was supportive for export-oriented issues including automaker and high-tech issues, as the U.S. dollar traded at the lower 105 yen level, little changed from its levels late Friday in Tokyo. A week ago, the dollar traded at the 103 yen level, increasing investor concerns over the impact of a stronger yen on the earnings of Japanese exporters. Other major gainers in the morning included brokerage, insurance, marine transport and bank issues. On the First Section, advancing issues outnumbered declining ones 881 to 689, with 142 others remaining unchanged in the morning. Automakers were firmer after the Nikkei financial daily reported Monday that Japan Post Service Co., the mail delivery unit of the Japan Post Group, plans to switch its fleet of 21,000 vehicles to battery-powered models starting in this fiscal year, amid growing environmental concerns and surging gasoline prices. Mitsubishi Motors, which reportedly plans to introduce electric vehicles for corporate users as early as 2009, surged 8 yen, or 4.28 percent, to a year-to-date high of 195 yen. Honda Motor and Toyota Motor also gained about 1 percent. Trading volume on the main section came to 1,052.19 million shares, up from Friday morning's 946.80 million shares. Value leader Mizuho Financial Group rose 19,000 yen, or 3.43 percent, to 573,000 yen. Volume leader Mitsubishi UFJ Financial Group gained 36 yen, or 3.34 percent, to 1,114 yen. The TSE's Second Section index gained 3.86 points, or 0.13 percent, to 3,009.31 on a volume of 30.56 million shares. On the Osaka Securities Exchange, the near-term June Nikkei 225 index futures contract was up 20 points to 14,360. Copyright ? 2008 Kyodo News International, Inc. |