Koizumi factor sends Tokyo higher

Koizumi's appeal outweighs the impact of a weaker Wall Street

TOKYO, Japan -- Tokyo stocks opened higher on Monday on hopes that reformist Junichiro Koizumi could win the contest to become Japan's next prime minister.

Traders said Koizumi's appeal outweighed the impact of a weaker Wall Street.

"Being seen as reform-minded, Koizumi is drawing support among market players. But we don't know much about his concrete economic policy. This will keep the market from staging a runaway rally," said Hiroichi Nishi, a general manager at Nikko Securities.

The benchmark Nikkei average was up 135.72 points or 0.99 percent at 13,901.39 at 0004 GMT, while the capital-weighted TOPIX index rose 6.75 points or 0.51 percent to 1,336.81.

Tokyo's gains were broad-based with both high-tech firms such as Advantest Corp and steelmakers including NKK Corp gaining ground.

Proposal to privatize postal system

Yamato Transport Co Ltd was up 150 yen or 5.8 percent at 2,735. Yamato attracted buyers as a win for Koizumi would benefit the transport industry as a whole as he has proposed to privatize the postal system.

Yamato is Japan's top firm in handling small packages has competed against nationwide post offices. Its rival Nippon Express Co Ltd was up 39 yen or 6.82 percent to 611.

Advantest, a top manufacturer of semiconductor testing devices, rose 3.05 percent to 15,200 yen and electronics giant Sony Corp gained 0.76 percent to 9,240 yen.

In the manufacturing sector, NKK rose 3.08 percent to 134 yen and shipbuilder Hitachi Zosen Corp was up 5.93 percent at 125 yen.

Reuters contributed to this report.

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