Techs take Nikkei above 10,500


Sony and other tech stocks were higher by midday Tuesday in Tokyo

TOKYO, Japan -- Tokyo stocks were higher by midday Tuesday after Nasdaq's highest close since August and better-than-expected results from U.S. tech bellwether Cisco Systems.

The benchmark Nikkei 225 average was up 76.89 points or 0.74 percent to 10,524.43, after touching 10,562 in the morning. The broader, capital-weighted Topix index rose 3.17 points or 0.3 percent to 1057.21.

Japan's rally came after Wall Street closed strongly, with the Dow Jones industrial average up 117.49 points or 1.26 percent to 9441.03 and the Nasdaq put on 47.92 points or 2.74 percent to 1793.65.

Most observers also expect another rate cut from the U.S. Federal Reserve when its open market committee meets Tuesday.

U.S. tech leader Cisco, which makes the gear that helps power the Internet, last traded on the Instinet electronic broker system at $18.78, up from a regular close of $17.90.

That prompted Japanese investors to focus on tech issues such as Sony and Fujitsu.

Australia, Korea, HK all higher

Other markets in the region were also stronger at the midday break.

Australia's S&P/ASX200 was up strongly, putting on more than 54 points to 3280.3 as banks and resources stocks made good gains.

The market's biggest stock, News Corp, recovered from Monday's fall to be up 55 cents or more than 4.1 percent to A$13.75.

In Seoul, the Kospi was up 1.09 percent or 6.13 points to 567.75, with Samsung Electronics and SK Telecom both higher. Hynix Semiconductor declined.

In New Zealand the Top 40 broke through the 2000 mark to be up 13.76 points or 0.7 percent to reach 2008.76.

Hong Kong's Hang Seng index was up 70 points to 10,500, with banking heavyweight HSBC up 0.85 percent to HK$88.75.

Taiwan's Taiex was up about 46 points or 1 percent to 4127, but in Singapore the Straits Times index was slightly in the red in late morning trade.

Bank shares still a worry


NTT DoCoMo was flat, ahead of its earnings release on Wednesday

Observers worry that gains in Japan may prove elusive as investors shift their attention back to the earnings woes of Japanese technology manufacturers and a mountain of bad loans at financial institutions.

"High-tech gains are sort of a given. But if bank shares continue to struggle after Monday's dismal losses, that could put a damper on the broader market," Masayoshi Okamoto, a trader at Jujiya Securities, told Reuters.

Chip and computer maker Fujitsu Ltd rose 2.21 percent to 926 yen, Hitachi was up 15 yen to 904 yen and electronics giant Sony Corp gained 1.01 percent to 4,990 yen, following their U.S. peers higher.

Mobile phone leader NTT DoCoMo, which reports earnings on Wednesday, was flat at 1.59 million after moving in and out of the red in morning trade.

The picture was not so rosy in the banking sector. Mizuho Holdings Inc, the world's largest banking group by assets, extending its Monday slide amid persistent investor worries about its massive problem loans.

Mizuho, which fell 4.93 percent on Monday to a record closing low of 347,000 yen, was down 2.3 percent to 3339,000 yen.

Reuters contributed to this report.