(Adds shares, comments)
By Aiko Hayashi
TOKYO, March 24 (Reuters) - Japanese stocks extended a
three-session winning streak on Monday as gains by automakers
such as Toyota Motor Co <7203.T> on a stabilising yen helped
offset declines in recent gainers including insurers.
Shares of Nissan Motor Co Ltd <7201.T> jumped nearly 4
percent after Chief Executive Carlos Ghosn said on Friday that
Japan's third-largest automaker expects to beat its global sales
target for the year ending March 31. []
But shares of Nippon Suisan Kaisha <1332.T> slipped more than
6 percent after Japan's No. 2 fisheries firm roughly halved its
operating profit forecast for the year to March 31 to 7 billion
yen. []
"The yen trading near 100 yen is supporting automakers, but
it's still not active buying yet," said Takahiko Murai, general
manager of equities at Nozomi Securities.
He said the market generally lacked trading factors as U.S.
markets were closed on Friday for Easter, as was most of Europe,
which will also stay shut on Monday.
"On top of that, we're approaching the Japanese corporate
earnings season, and the market is unlikely to move much until
then."
The benchmark Nikkei average <> ended the morning
session up 0.4 percent, or 46.33 points, at 12,528.90. The Nikkei
ended up 1.8 percent on Friday, gaining 2 percent for the
holiday-shortened week, but is still off some 11 percent from its
recent high hit in February.
The broader TOPIX index <> added 0.7 percent, or 8.42
points by midday, to 1,228.46.
The dollar steadied against the yen around 99.80 yen <JPY=>,
near flat from Friday, but well above a 13-year low touched last
week thanks to a series of aggressive efforts by the Federal
Reserve to ease the U.S. credit crisis.
Murai said investors largely shrugged off a government survey
that showed big Japanese manufacturers' confidence in business
conditions sank to a new low in the three months to March.
[]
Yasuo Yamamoto, senior economist at Mizuho Research
Institute, said sentiment at manufacturers has deteriorated as
expected as rises in the yen and crude oil prices have weighed.
"Japanese firms will face a severe situation in terms of
profits around the first half of fiscal 2008-09," he said.
AUTOMAKERS LEAD
Shares of Toyota rose 2.1 percent to 5,330 yen and Honda
Motor Co Ltd <7267.T> climbed 2.1 percent to 2,935 yen.
Nissan gained 3.8 percent to 892 yen.
Separately, a source familiar with the matter said on
Saturday Toyota plans to build a plant in Japan to meet growing
global demand for engines for compact cars. []
Insurers lost ground after sharp gains in the previous
session, with Millea Holdings Inc <8766.T>, Japan's largest
non-life insurer, giving up 2.8 percent to 3,770 yen.
Financial shares advanced on Friday on hopes that U.S.
measures to cope with the credit crunch will stabilise markets
and support the economy.
Mitsui Sumitomo Insurance <8752.T> also shed 4 percent to
1,079 yen and Sompo Japan Insurance Inc <8755.T> fell 0.8 percent
to 948 yen.
Shares of Nippon Suisan were down 6.7 percent at 389 yen.
Trade was light on the Tokyo exchange's first section, with
713 million shares changing hands in morning trading, compared
with last week's morning average of 973 million.
Advancing stocks beat declining ones by a ratio of more than
2 to 1.
(Additional reporting by the Tokyo newsroom)
(Reporting by Aiko Hayashi; editing by Gary Crosse)
