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Nikkei in narrow range, weighed by profit-taking

Published 02/14/2011, 08:25 PM
Updated 02/14/2011, 08:28 PM

* Nikkei moves in a narrow range after hitting 9-mth peak

* GS Yuasa jumps after raising profit forecast

By Taiga Uranaka

TOKYO, Feb 15 (Reuters) - Japan's Nikkei average was flat on Tuesday after briefly inching up to a nine-month high, weighed by profit-taking following small overnight gains on Wall Street.

"Investors do not have clear direction today. They are waiting for other Asian markets to see if they extend gains," said Masatoshi Sato, senior strategist at Mizuho Investors Securities. "If anything, the prevailing mood is of profit-taking."

As of 0048 GMT, the Nikkei average was flat at 10,728.58 after moving in a very narrow range, while the broader Topix rose 0.2 percent to 960.88.

Car battery maker GS Yuasa gained 4.4 percent to 614 yen after it lifted its operating profit forecast by 13.3 percent to 17 billion yen ($204 million) for the full-year through March, as it was able to pass on a rise in lead prices to products amid solid demand.

Casio Computer rose 4.0 percent to 709 yen after Morgan Stanley MUFG raised its rating to "overweight" from "underweight" and hiked its target price to 840 yen from 590 yen.

The brokerage said there is a low risk of the firm losing money as it is shifting to prioritizing profitability from capturing market share, according to a research report obtained by Reuters.

Market's attention is also on Chinese inflation data scheduled for the close of Tokyo's morning session, though some expect it to be a non-event as price increases are widely seen coming below the consensus found in a recent poll. (Reporting by Taiga Uranaka; Editing by Joseph Radford)

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