Nikkei edges up as telecoms gain in cautious trade
By Joshua Hunt
TOKYO Oct 20 (Reuters) - Japanese shares edged up on Tuesday as investors adopted a cautious approach ahead of October policy meetings at big central banks, kicking off on Thursday when the European Central Bank meets.
The Nikkei share average gained 0.4 percent to close at 18,207.15.
Japanese telecoms added significantly to the index after reports from Deutsche Bank and Barclays highlighted the sector's rebound potential following the first meeting of a government task force on rate and service reforms, held Monday.
KDDI led the sector with a gain of 4.9 percent after Deutsche Bank upgraded its stock's rating to 'buy' from 'hold,' calling it oversold. NTT Docomo added 3.6 percent while Softbank, which has less exposure to the domestic mobile telecom market, edged up 1.5 percent.
Asahi Kasei tumbled 4 percent after Moody's cut its outlook to 'negative' from 'stable.' The rating cut followed Asahi Kasei's recent announcement that a subsidiary had sub-contracted faulty work at a Yokohama apartment complex and then modified data on the work in reports. The parent company has said it will incur costs associated with an investigation, repairs and potential sanctions.
The broader Topix gained 0.3 percent to close at 1,499.28 and the JPX-Nikkei Index 400 rose 0.4 percent to 13,428.88. (Reporting by Joshua Hunt and Ayai Tomisawa; Editing by Eric Meijer)
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