Nikkei soars as techs end firmer

The Nikkei ended 33.28 points firmer at 13,385.72

In this story: Nikkei up 33.28 points Korea shares end barely higher Taiwan stocks end off RELATED STORIES

By Staff and wire reports

TOKYO, Japan -- A third straight day of gains in major technology shares pulled Tokyo's Nikkei average up to a slightly higher close on Friday.

Buying broadened later in the afternoon to "old economy" issues on reports that NKK, Japan's second-largest steelmaker, had agreed to start merger talks with Kawasaki Steel.

But analysts say uncertainty on the political front is beginning to temper market optimism.

Nikkei up 33.28 points

The technology-sensitive Nikkei average of 225 stocks ended 33.28 points or 0.25 percent firmer at 13,385.72.

"High-tech issues may be dependent on the Nasdaq, but the recent news of restructuring and business alliances in old Japan companies, such as in the steel sector, is very positive for the market," says Hiroichi Nishi, general manager of Nikko Securities' products group.

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The capital-weighted TOPIX index of all shares listed on the Tokyo Stock Exchange's first section, however, eased 2.13 points or 0.16 percent to 1,299.20, hurt by falls in recent advancers including shipping company Mitsui O.S.K. Lines and major movie producer Toei.

NKK soared 12.62 percent to 116 yen on the report of a merger.

Trading was active, with 1,042.22 million shares changing hands on the first section, up from Thursday's 856.27 million.

A four-day rally in the Nasdaq until Thursday fueled buying in the broader technology sector in Tokyo, but some lost their shine late on Friday with the U.S. financial market being closed for Good Friday.

Advantest, a maker of semiconductor testing devices, had soared nearly seven percent to 14,570 yen before ending the day up 0.29 percent at 13,660.

Analysts say the market's trend may have run its course, as investor attention shifts to a four-way race to replace Japan's unpopular prime minister and concerns that implementation of key reform proposals included in an economic package will take a back seat to political wrangling.

Korea shares end barely higher

South Korea's benchmark stock index ended barely higher on Friday as the market was pressured near the 20-day moving average of 520 points and investors took profits after three strong sessions.

The Korea Composite Stock Price Index (KOSPI) closed up 0.37 percent or 1.89 points at 516.10.

The over-the-counter Kosdaq ended up 0.44 percent or 0.30 points at 68.62.

Taiwan stocks end off

Taiwan stocks closed lower after a two-day, 3.36 percent rise as lingering concerns over corporate earnings prevented the index from breaking a technical resistance.

Brokers said investors turned cautious after the index touched a technical resistance at around 5,570, the index's closing average over the past three months. The index briefly rose to a high of 5,601.49 before selling emerged to wipe out all earlier gains.

Taiwan's dominant electronics plays, which rose more than one percent in early trade, ended down 1.49 percent on late selling, with TSMC down 1.16 percent at T$85, UMC falling 0.99 percent to T$50. Realtek added 1.05 percent to T$192.

The TAIX closed down 37.75 points or 0.68 percent, to 5,495.47.

Stock markets in Australia, Hong Kong, and India are closed for the Easter Holidays.

Reuters contributed to this report.

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