Tokyo stocks take heart from U.S. strength


Japanese investors were hoping Prime Minister Koizumi might act earlier on stimulating the economy

TOKYO, Japan (Reuters) -- Japanese shares opened firmer on Tuesday as investors, relieved by a second day of gains in U.S. stocks, returned to several blue-chip issues including Sony Corp.

Caution ahead of the September 11 anniversary together with fears of a slowdown in the U.S. economy had weighed on shares of Japanese exporters.

But healthy gains on Wall Street in the past two sessions were seen as a sign that investors there are looking past jitters over the anniversary and fears of a possible U.S. attack on Iraq, analysts said. (Wall St. rebound)

The Nikkei average was up 0.85 percent at 9,385.75 in the first 10 minutes of trade. The broader TOPIX index firmed 0.94 percent to 916.35.

Japan's top automaker, Toyota Motor Corp, rose 1.2 percent to 2,960 yen, while consumer electronics giant Sony gained 2.01 percent to 5,080 yen.

Fuji Photo Film Co gained 2.01 percent to 3,560 yen. The company, Japan's largest maker of photographic film, said on Tuesday it has developed a low-cost plastic optic fiber for high-speed communications that will be targeted for household use.

But the market's topside was limited since a rally based on hopes for Japanese government measures to re-inflate the economy and stock market seemed to be running out of steam.

Stimulus package postponed

Japanese media reported on Tuesday that Prime Minister Junichiro Koizumi would announce a draft plan to revitalize the economy as early as September 19, with the steps to be finalized in October.

Many had hoped the final package would be ready by the end of the first half of the current business year on September 30.

"There were hopes for swift anti-deflation measures on Monday," said Yutaka Miura, deputy manager of equity information at Shinko Securities.

"But the government's final decision is now said to have been postponed until October. That sounds a bit slow when compared with market expectations," he said.

Elsewhere in Asia, South Korea's Kospi was trading 1.33 percent higher at 707.19 in early business.

Australia's S&P/ASX200 index was 7.4 points, or 0.02 percent, lower at 3112.20 points after an hour's trading Tuesday.

New Zealand's Top 40 index was unchanged at 2019.06 shortly after 1 p.m. Wellington time.