Tokyo opens firmer on Sony, Honda strength

Matsushita Electric saw its shares fall Wednesday after it posted its first quarterly loss Tuesday

TOKYO, Japan -- Tokyo stocks opened firmer on Wednesday as bluechips Honda Motor and Sony extended their recent gains.

But consumer electronics giant Matsushita Electric Industrial slipped 2.3 percent to 1,700 yen, paring Tuesday's 3.88 percent gain. Matsushita on Tuesday posted an unprecedented group net loss of $155 million (19.37 billion yen) in the June quarter.

The benchmark Nikkei 225 share average was up 30.15 points or 0.25 percent to 11,890.92 by mid-morning. The broader, capital-weighted TOPIX index was up 6.44 points or 0.5 percent at 1,196.75.

Other markets in the region also were firmer, with the Kospi in Seoul up 11 points or 2 percent to 552.54, and Australia's S&P/ASX200 up 22.3 points to 3346.8.

In Taiwan, the Taiex was up 21.71 points or 0.5 percent to 4374.69.

Upside limited on economic jitters

In Tokyo the upside was seen likely to be limited due to lingering jitters over Japan's economy.

"The longer term trend is the same, and bearish. But the market is checking how long the current momentum will stay," said Kunihiro Hatae, general manager at Tokai Tokyo Securities' equities trading division.

On Tuesday, the Nikkei snapped back after a three-day losing streak and ended more than two percent higher at 11,860.77, buoyed by a bounce in recently battered high-tech issues such as Sony.

By mid-morning Wednesday, Sony was up 0.33 percent at 6,170 yen, adding to Tuesday's 5.49 percent rally. Before that, Sony shares had crumbled 17.5 percent after posting a $240 million (30 billion yen) net loss for the June quarter.

Honda jumped 2.82 percent to 5,840 yen, adding to a three-day 4.6 percent rally.

The number three automaker late on Tuesday announced record quarterly net profits, spurred by favorable currency rates and strong sales in its home market.

The bleak quarter came after demand dried up for information technology-related consumer electronics, mobile phones and electronic devices.

Reuters contributed to this report.