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Nikkei edges up on shippers, earnings in focus

Published 04/24/2011, 09:03 PM
Updated 04/24/2011, 09:04 PM
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* Nikkei medium-term resistance at 200-day m.a. at 9,805 -analyst

* Volume may stay thin as market awaits major earnings this week

By Ayai Tomisawa

TOKYO, April 25 (Reuters) - Japan's Nikkei edged up on Monday, helped by gains in shipping stocks on hopes for robust earnings, although volume may remain light as investors cautiously await corporate earnings reports due this week.

Analysts said the market's direction will hinge in large part on upcoming earnings reports, which will provide the first hard evidence of the extent of damage from last month's devastating earthquake.

Trading may be subdued as investors are reluctant to make big bets before Canon Inc , Sony Corp and construction machinery maker Komatsu Ltd report results, analysts added.

"Major earnings will start coming out after the market close, so investors will probably stay on the sidelines today," said Yumi Nishimura, a senior market analyst at Daiwa Securities. Support is expected at the Nikkei's 25-day moving average, now at 9,590, she added.

But shipping stocks outperformed the market after the Nikkei business daily on the weekend reported that earnings sharply rebounded at three major marine transport companies in the year ended on March 31.

Mitsui OSK Lines rose 2.7 percent to 464 yen, Nippon Yusen gained 2.3 percent to 307 yen and Kawasaki Kisen added 1.1 percent to 279 yen.

"The shippers' gains are straightforward. The expectations for good results reflect strong demand in the global economy and they suffered relatively little damage from the March earthquake," said Naoki Fujiwara, a fund manager at Shinkin Asset Management.

The benchmark Nikkei average was up 0.6 percent at 9737.41, while the broader Topix gained 0.5 percent to 846.67.

Analysts said the Nikkei was expected to trade between 9,600 and 9,750 on Monday, while medium term resistance is seen at its 200-day moving average at 9,805.

Komatsu Ltd rose 1.6 percent to 2,818 yen after the Nikkei business daily said the construction equipment maker's operating profit was expected to rise 30 percent to about 300 billion yen ($3.7 billion) in the current financial year that began in April. ($1 = 81.845 Japanese Yen) (Editing by Edmund Klamann)

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