Japan shares expand 0.22 percent by noon

25 Feb, 2011

The benchmark Nikkei index of the Tokyo Stock Exchange firmed 22.97 points to 10,475.68 by the break and the Topix index of all first section shares added 0.17 percent or 1.62 points to 935.84.

Analysts attributed the buying to a decline in oil, which came after the Organisation of the Petroleum Exporting Countries (OPEC) and Saudi Arabia said they would boost output to meet any shortfall caused by the Middle East unrest.

But Kenichi Hirano, an operating officer at Tachibana Securities, told Dow Jones Newswires: "Oil futures may be declining for now partly on profit-taking. But the outlook is still uncertain."

He added that crude will likely be the dominant factor in determining whether Japanese shares will face further downward adjustment next week.

The promise of a production boost also helped US stock markets pare earlier losses.

The Dow closed down 37.28 points, or 0.31 percent, at 12,068.50 and the broader S&P 500 was off 1.30 points, or 0.10 percent, to 1,306.10.

The tech-driven Nasdaq managed to eke out a gain, adding 14.91 points, or 0.55 percent, at 2,737.90.

The dollar firmed to 81.94 yen in Tokyo trade, compared with 81.91 in New York late Thursday.

The euro rose to 113.34 yen, compared with 113.02 yen.

Toyota Motor rose 1.63 percent to 3,735 yen after Credit Suisse upgraded it to Outperform, despite news that the car giant had recalled another 2.17 million vehicles in the United States to fix floor mat and carpet defects that could jam the accelerator.

Energy firm Inpex fell 1.04 percent to 570,000 yen due to the decline in oil prices.

Leading chipmaker Elpida Memory gained 3.15 percent to 1,179 yen after its president signalled a DRAM price hike next month.

Copyright AFP (Agence France-Presse), 2011

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