Tokyo stocks end morning higher

TOKYO: Tokyo stocks added 0.10 percent Tuesday morning, aided by dip buying and overnight gains on Wall Street, as the dollar held steady against the yen amid continued intervention threats from the government.

The Nikkei's move higher came after four consecutive trading days of losses, with overseas markets gaining on hopes that the civil war in Libya will soon come to an end, enabling a resumption of stalled oil supplies.

Markets were eyeing China's HSBC manufacturing Purchasing Managers Index data, due later in the day, for clues about the pace of growth in the world's second largest economy.

The benchmark Nikkei-225 index of the Tokyo Stock Exchange added 8.65 points to 8,636.78. The Topix index added 1.04 points, or 0.14 percent, to 743.88.

The Nikkei may get support Tuesday from dip-buying of cheaply valued shares after the index fell 5.3 percent over the past four days, brokers said.

"There may be some support from signs of stability in the foreign exchange market and the US stock market, combined with expectations ahead of US Fed chairman Ben Bernanke's speech," said Kazuhiro Takahashi, general manager at Daiwa Securities.

The US central bank chief is due to give a highly-anticipated speech on Friday, although caution over what exactly it will offer in terms of measures to soothe markets capped Tokyo's gains, said analysts.

Takahashi said gains in the Nikkei would be limited given continuing uncertainty about the US economic outlook.

US and European stocks were lifted on Monday amid news that Libya's rebels were fighting to take control of the capital Tripoli and defeat Moamer Kadhafi.

Sentiment was supported as the dollar held steady against the yen after hitting last week's postwar low. The Japanese unit weakened against the euro, helping boost exporter shares.

Finance Minister Yoshihiko Noda on Tuesday continued to maintain market vigilance after he pledged "decisive action" on Monday to counter the rise of the yen to levels that could threaten the nation's recovery from the impact of the March 11 disasters.

However, "The technical rebound is not very strong and foreigners are continuing to sell Japanese equities," Yoshihiro Okumura, general manager at Chibagin Asset Management, told Dow Jones Newswires.

He adds that investors remain cautious ahead of the release of European economic data later in the global trading day.

Nikon added 2.81 percent to 1,641 yen, while Canon was up 1.57 percent at 3,525 yen. Toyota Motor rose 0.37 percent to 2,710 yen on a deal with Ford Motor to develop a new gas-electric hybrid system for use in light trucks and sports utility vehicles.

The dollar traded at 76.77 yen in early Asian trade on Tuesday from 76.78 yen in New York late Monday. The euro fetched 110.36 yen from 110.19.

Copyright AFP (Agence France-Presse), 2011