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Tokyo stocks rise on U.S. earnings, Toyota weighs

TOKYO, Feb. 3 (Xinhua) -- Japan's Nikkei Stock Average rose 0. 32 percent on Wednesday as resource-linked issues extended gains on higher commodity prices, but further recall woes for Toyota capped gains and budget chain store operator Fast Retailing weig

TOKYO, Feb. 3 (Xinhua) -- Japan's Nikkei Stock Average rose 0. 32 percent on Wednesday as resource-linked issues extended gains on higher commodity prices, but further recall woes for Toyota capped gains and budget chain store operator Fast Retailing weighed on the market on sluggish sales in January.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 2.86 points, or 0.31 percent, to 915. 68.

Data released showing sales of previously owned U.S. homes had increased coupled with robust earnings from the U.S. consumer and industrial sectors, saw Wall Street close higher for a second day on Tuesday, whetting the appetite of domestic investors, brokers said.

"The U.S. housing report might help investors have a little more confidence in the economy than before," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co.

"People had expected difficulties in the recovery of the housing market."

However market players indicated that although the Nikkei may be set to break its 25-day moving average and close above the 10, 600 line, the benchmark is primed for profit-taking, as investor concerns over U.S. bank regulations, upcoming U.S. employment data and credit issues in the eurozone remain prominent.

Resource-linked shares led Wednesday's rally as oil prices shot up nearly 4 percent on Tuesday on the dollar's retreat. Subsequently, Nippon Oil Corp. rose 4.5 percent to 465 yen. Nippon Mining Holdings Inc. climbed 4.6 percent to 430 yen and oil and gas field developer Inpex Corp. extended gains on Tuesday, adding 1.2 percent to close at 678,000 yen.

Japan's exporters faired reasonably well on Wednesday with Canon Inc. rising 1.39 percent to 3,660 yen and Olympus Corp. climbing 3.03 percent to 2,860 yen. Ricoh Co. Ltd. gained 1.66 percent to 1,349 yen and Casio Computer Co. Ltd. closed up 1.03 percent at 688 yen.

Pioneer Corp. surged 6.6 percent to 373 yen following the Nikkei business daily newspaper saying Mitsubishi Chemical Corp. will likely invest 1-1.5 billion yen (11.1-16.6 million U.S. dollars) to take a small stake in the electronics maker and the two firms will jointly develop organic electroluminescent lighting equipment.

Shares in Toyota took a plunge on Wednesday capping gains on the market, following the U.S. government announcing possible civil penalties being imposed on the world's largest automaker.

Already stricken by its recall on some 4.5 million vehicles in North America and Europe over concerns of potentially faulty accelerator pedals and impending lawsuits from consumers, Toyota now faces complaints made in Japan and North America over its top- selling Prius hybrid model, with drivers indicating that the vehicle has insufficient braking capacity on bumpy roads and in frozen conditions, according to sources with knowledge on the matter.

Toyota Motor Corp., set to announce its interim earnings on Thursday, skidded down 5.7 percent to 3,400 yen at the 3 p.m. bell.

Fast Retailing Co. Ltd., a notable decliner on Wednesday's Nikkei, lost 3.1 percent to 14,560 yen, after same-store sales at its high street branches of Uniqlo apparel stores fell 7.2 percent in January, due to a shortage of inventory after robust sales the previous month.

Other Japanese retail issues advanced on strong earnings however, with department store operator Isetan Mitsukoshi Holdings Ltd. gaining 3.69 percent to 899 yen and Marui Group Co. Ltd. adding 2.82 percent to 583 yen. J Front Retailing Co. Ltd., also an operator of department stores, surged 6.3 percent to close at 472 yen.

Some 2.1 billion shares changed hands on the Tokyo exchange's First section on Wednesday, down from Tuesday's volume of 1.9 billion shares.

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