(Adds stocks, details)
By Elaine Lies
TOKYO, April 7 (Reuters) - Japan's Nikkei stock average edged
up by 0.4 percent on Monday as the dollar rose, but Toyota Motor
Co <7203.T> weakened on worries about a slowing U.S. economy
after the biggest monthly fall in jobs there in five years.
Oil field developer Inpex Holdings Inc <1605.T> and other
resource-linked shares, including trading houses, climbed after
crude oil and precious metals rose overseas. But steelmakers fell
on reports of a sharp rise in raw material costs.
Market players said that despite the U.S. jobs data and
lingering worries about U.S. banks after a string of cuts in
earnings estimates, the fact that Wall Street held largely firm
was encouraging.
"The jobs data was bad and what the market had dreaded for so
long finally happened -- (bond insurer) MBIA had its rating cut.
But even so, Wall Street was able to largely shrug off that sort
of bad news," said Nagayuki Yamagishi, a strategist at Mitsubishi
UFJ Securities.
"Markets seem to have simply become resigned to the fact that
the U.S. economy's in bad shape, and have factored this in."
On Friday, MBIA Inc's <MBI.N> insurance arm lost its top
rating from Finch. But while just the chance of such a cut roiled
financial markets earlier this year, several other bond insurers
have already lost triple-A ratings, and the news was not a
surprise. []
Others remained a bit more wary.
"I believe the worst may have passed, and markets have priced
in a mild recession. But if the recession turns out to not be
mild, things could change," said Hiroaki Osakabe, a fund manager
at Chiba Asset Management.
The benchmark Nikkei <> gained 57.17 points to
13,350.39, while the broader TOPIX <> rose 0.5 percent to
1,295.02.
Attention now will be turning to company earnings, with
Japan's second-largest retailer Aeon Co Ltd <8267.T> set to
announce results later on Monday.
STEEL SOFTENS, TRADING HOUSES TOUGH
Steel shares fell sharply after the Nikkei business daily
reported on Saturday that Japan's No.1 Nippon Steel Corp <5401.T>
was expected to agree to a proposed 200 percent increase in
coking coal prices by BHP Billiton Ltd <BHP.AX> for the current
year to March 31, 2009.
Smaller rivals are expected to agree to the same hike, with
the industrywide costs estimated to be up by 1.5 trillion yen
($14.75 billion) for the fiscal year through next March, the
Nikkei said. [] []
Nippon Steel dropped 4.3 percent to 507 yen. JFE Holdings
Inc <5411.T> fell 3.3 percent to 4,470 yen and Sumitomo Metal
Industries Ltd <5405.T> shed 2.2 percent to 394 yen.
Trading houses and other resource-related shares rose as both
oil and gold extended gains during Asian time, though they had
fallen back slightly by midday.
U.S. crude for May delivery <CLc1> rose towards $107 after
the dollar initially fell and a fire hit a U.S. refinery, and
gold rose as a result.
Mitsui & Co <8031.T> rose 6.1 percent to 2,255 yen,
Mitsubishi Corp <8058.T> rose 4 percent to 3,380 yen and Itochu
Corp <8001.T> gained 3.3 percent to 1,060 yen.
Toyota fell 1.6 percent to 4,910 yen, but other automakers
managed to eke out gains.
Inpex Holdings rose 1.8 percent to 1.15 million yen.
Trade was moderate on the Tokyo exchange's first section,
with 822 million shares changing hands, in line with last week's
morning average.
Advancing stocks beat declining ones by 906 to 679.
($1=101.68 yen)
(Editing by Brent Kininmont)
