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Nikkei climbs as techs, trading houses rise

Tue Nov 10, 2009 6:38am IST
 
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* Nikkei up on short-covering, but resistance near 10,000

* Trading houses gain after commodity prices rise

* Toshiba up after bid for Areva T&D business

TOKYO, Nov 10 (Reuters) - Japan's Nikkei average rose 1.5 percent on Tuesday, buoyed by Wall Street's gains as interest in risk-taking rose, with Mitsubishi Corp (8058.T: Quote, Profile, Research) and other trading firms up reflecting climbs in oil, gold and other commodities. Toshiba Corp (6502.T: Quote, Profile, Research) rose nearly 2 percent after it made a solo bid for French nuclear reactor builder Areva's (CEPFi.PA: Quote, Profile, Research) transmission and distribution (T&D) business. [ID:nL9177274]

The Dow rose to a 13-month high and other Wall Street indexes gained after the Group of 20 pledged to keep aid flowing to the world economy, encouraging investor appetite for risk, but analysts said long-term uncertainty was likely to keep a lid on gains.

"Things are definitely getting brighter for the short term, but over the longer term there's quite a lot of uncertainty that's preventing rises in Japanese stocks," said Hiroichi Nishi, general manager at the equity division of Nikko Cordial Securities.

"Will there be more government bond issuance? Will the yen continue to rise? And what sort of policies can we expect from the government?"

The benchmark Nikkei .N225 gained 142.08 points to 9,951.07, while the broader Topix .TOPX, which is not as heavily tech-centred, rose 0.9 percent to 878.45.

Analysts said the Nikkei faces resistance at around 10,000, just about where the 25-day moving average comes in, but if it gained upward momentum it could quickly punch through that.   Continued...

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