Tankan result boosts Tokyo market


Big manufacturers in Japan are now more confident about the future

Staff and wire reports

TOKYO, Japan -- Tokyo's broad Topix index is higher in Monday afternoon trade after the Bank of Japan's key "tankan" survey of corporate confidence produced a better than expected result.

The Topix is up 0.47 percent or 4.84 points to 1029.73, building on Friday's 3 percent gain.

But the Nikkei 225 average is just into the red, down 8.28 points or 0.08 percent at 10,613.56.

Other markets in the region are mixed, with Australia higher but both Taiwan and Singapore down.

The Taiex, which often experiences large swings, is off sharply in Taipei, down 3.73 percent to 4961.59. Singapore's Straits Times is down just 0.16 percent.

South Korea, Hong Kong closed


Big banks are among the gainers in Tokyo trade Monday

The markets in South Korea and Hong Kong are closed Monday for public holidays.

In Tokyo, the tankan survey released by the BOJ before the market opened showed the index for big manufacturers rose to minus 18 in June from minus 38 in March.

That was better than most economists predicted, and is the biggest improvement on record.

That lifted banks, industrial stocks such as Nippon Steel Corp and other issues linked to domestic demand.

Sumitomo Mitsui Banking Corp, the most active stock on the main board, put on 2.74 percent to 601 yen.

The other big banks are also stronger, with Mizuho Holdings up 1.88 percent to 271,000 yen, UFJ Holdings 1.72 percent higher to 295,000 yen and MTFG up 1 percent to 816,000 yen.

Nippon Steel is up 2.67 percent to 192 yen. Telco leader NTT is up 1.83 percent to 502,000 yen.

Upturn 'on the way'

"It (the tankan) is proof that Japan's cyclical upturn is on its way," Hideo Ueki, chief investment officer at UBS Asset Management (Japan), told Reuters news agency.

"Everyone has started to realise that the economy hit bottom in the earlier part of the year or the end of last year."

Among technology stocks, consumer electronics leader Sony Corp, digital camera-maker Canon and chipmakers Fujitsu, Toshiba and Hitachi are all lower heading into Monday afternoon.

They and other high-tech exporters are reacting to concerns about the strength of the pickup in the U.S. economy.

Sony is down 2.37 percent to 6180 yen. Investors are worried that a stronger yen will hurt Sony's overseas profits, particularly in the U.S. where a large part of its sales are made.

Dollar under 120

Automaker Toyota is down 1.57 percent to 3130 yen, but rivals Honda and Nissan are both higher.

The dollar is buying about 119.50 yen. It is down about 10 percent against the Japanese currency since April 1.

Fuji Photo Film fell 3.88 percent to 3720 yen after its U.S. business partner, copier maker Xerox Corp, became the latest U.S. firm to come under pressure due to accounting problems by restating five years of results.

Fuji and Xerox own 75 percent and 25 percent respectively of the joint venture Fuji Xerox Co Ltd. Xerox's stock fell 13 percent on Friday.

In Australia, the benchmark S&P/ASX200 is up 0.13 percent or 4.3 points to 3220.3 in early afternoon trade.

The big mover is market heavyweight News Corp, which is up 46 cents or 4.75 percent to A$10.14 after touching a three-year low last week.

Telstra buys out PCCW

Telstra is also higher, up 1.3 percent to A$4.72. It unveiled a $614 million buyout Monday of its partner PCCW in the Hong Kong mobile operator CSL.

Resources leaders BHP Billiton and Rio Tinto are both stronger, but big banks are easier. NAB and CBA are down about 1.5 percent each.

Singapore's Straits Times index is slightly lower, down 2.45 points or 0.16 percent to 1550.53 near midday.

Singapore Airlines is down 0.8 percent and SingTel is off 0.7 percent.

In Taiwan, the market is broadly lower. Formosa Plastic is down 5 percent to T$38.10 and Far East Textile is also off 5 percent to T$14.00. Chip foundries TSMC and UMC are 2.2 percent and 2.5 percent lower respectively.