Tokyo stocks close higher despite North Korea worries

TOKYO: Tokyo stocks closed 0.70 percent higher on Thursday despite concern over North Korea's planned rocket launch, which has been met with a chorus of international protest.

The Nikkei 225 index at the Tokyo Stock Exchange added 66.05 points to 9,524.79, while the Topix index of all first-section shares jumped back into positive territory to end 0.50 percent higher, or 4.04 points, at 809.88.

The Nikkei index was up as worries over the euro-zone crisis recede for now, said Daiwa Securities chief technical analyst Eiji Kinouchi.

Technically, "a rising trend is expected later this month from next Tuesday" as a result of investors closing their positions on six-month margin trading, he told Dow Jones Newswires.

But investors were also cautious amid worries about North Korea's rocket launch, said Yoshihiro Okumura.

"Geopolitical risk could ripple through the markets quite a bit. Some are taking a wait-and-see approach," he told Dow Jones Newswires.

The isolated communist state is poised to go ahead with a launch in the coming days to mark the centenary of the birth of its founding leader Kim Il-Sung.

The West has said it is a thinly veiled missile test banned by UN Security Council resolutions, but Pyongyang insists it is a peaceful space project.

Sony firmed 0.58 percent to 1,528 yen, recovering from its 4.47 percent plunge Wednesday, the day after saying it expected its full-year loss to reach about $6.4 billion, more than five times an earlier estimate.

After the market close, Sony's new chief executive Kazuo Hirai told reporters he will cut roughly 10,000 jobs globally as part of its restructuring plan.

Gains were led by traders, with Mitsubishi Corp firming 2.74 percent to 1,837 yen.

Uniqlo cheap chic clothing chain operator Fast Retailing closed up 1.51 percent at 17,470 yen before announcing its first-half earnings report. It booked a net profit of 57.8 billion yen, up from 41.7 billion a year earlier.

Precision motors manufacture Nidec traded on the Osaka Stock Exchange firmed 0.97 percent to 7,220 yen by 0610 GMT, following its announced intent to acquire Ansaldo Sistemi Industriali SpA, a leading Italian motor manufacturer.