Markets

Tokyo stocks up 0.25pc by noon

Published Updated

The benchmark Nikkei 225 index at the Tokyo Stock Exchange rose 21.89 points at 8,723.12.

In mixed trade, the broader Topix index of all first-section issues declined 1.15 points, or 0.15 percent, to 761.15.

Investors struggled to find direction, sending the Nikkei shares to fall into negative territory, down 0.3 percent, soon after the opening bell.

"Sentiment is somewhat improved from earlier in the week because of Germany's nod to boosting the euro-zone bailout fund," Toshiyuki Kanayama, market analyst at online brokerage firm Monex told Dow Jones Newswires.

He noted blue-chip stocks are also buoyed by quarter-ending cosmetic buying.

The German approval of the EU's July 21 plan gave hopes that it would pass all 17 eurozone states and Europe's leaders would move ahead with a confidence-building second bailout of Greece and also strengthen the region's banks.

The Dow Jones Industrial Average closed up 143.08 points (1.30 percent) at 11,153.98.

But Yutaka Miura, senior technical analyst at Mizuho Securities, said Germany's vote to expand the eurozone's bailout fund had already been priced in, noting US stocks had shown mixed performance despite positive economic data overnight.

US blue chips rebounded but tech stocks fell despite better-than-expected new US data, including an upward revision to second quarter GDP and lower jobless claims.

"Gains are limited today despite the surprisingly positive US (economic) data overnight," Yoshihiro Okumura, general manager of research at Chibagin Asset Management, told Dow Jones Newswires.

"This trend will likely drag on at least for another week."

Furukawa Electric was down 5.33 percent at 213 yen after revising down its earnings view in light of a $200 million fine for price-fixing in the United States.

Sumitomo Electric Industries, which is also under investigation by US authorities, was off 9.32 percent at 904 yen.

Copyright AFP (Agence France-Presse), 2011