Nikkei up as yen hit by Republican win in US election; Toyota jumps

miércoles 5 de noviembre de 2014 22:13 GYT

* Technical charts signal near-term profit-taking - analysts
    * Toyota soars on rosy earnings prospects
    * Suntory surges on strong earnings for Jan-Sept

    By Ayai Tomisawa
    TOKYO, Nov 6 (Reuters) - Japanese stocks edged up and
hovered near seven-year highs on Thursday as the yen fell
against the dollar after Republicans swept U.S. mid-term
elections, while Toyota Motor Corp jumped after it
raised its full-year outlook.
    The Nikkei benchmark added 0.2 percent to 16,969.19
in mid-morning trade after moving above the 17,000-mark earlier.
    Traders said that investors are cautious about ploughing
more cash into a market that's seen steep rises in a short
period of time.
    The Nikkei soared 8.2 percent in the last three trading days
as investors cheered the Bank Of Japan's shock move on Friday to
expand its monetary stimulus programme, as well as the
Government Pension Investment Fund's decision to increase its
allocation of funds to domestic stocks.
    "Some technical charts show that imminent profit-taking is
very possible," said Hikaru Sato, a senior technical analyst at
Daiwa Securities.
    The Nikkei is trading 9 percent above its 25-day moving
average of 15,578.06.
    "Even in a bullish environment, historical data has shown
that the percentage gains showing a gap between the current
level and the 25-day moving average should stay within 8
percent," Sato said, meaning the market is currently overheated.
    Toyota was the highlight of the morning after the world's
biggest automaker surprised investors with an earnings upgrade,
predicting operating profit of 2.50 trillion yen for the
business year ending March 31, up from the previously forecast
2.30 trillion yen. The stock rose 1.2 percent and was the most
traded by turnover. 
    "It was impressive that the automaker was able to be
profitable through its value added models like Lexus hybrids,"
said Yoshihiro Okumura, an analyst at Chibagin Asset Management.
"Toyota is also expected to post a high operating profit margin
through a new platform next year, and it's a plus in the
    Toyota plans to release a fuel-cell vehicle by 2015, and has
developed a new platform TNGA -- Toyota New Global Architecture
-- that it will mount in the new Prius. TNGA, a highly
cost-competitive platform, will be incorporated into a number of
core models.
    In the U.S., stocks rallied and the dollar rose as the
Republican victories bolstered investor hopes for more business
and energy-friendly policies. 
    That sent the dollar reached a seven-year high of 115 yen
, and spurred exporters higher. Nissan Motor Co 
rose 1.0 percent and Tokyo Electron Ltd gained 1.5
    Suntory Beverage & Food soared 4.2 percent after it
released strong profits for the Jan-Sept period due to robust
sales in water and other beverage drinks.
    The broader Topix gained 0.3 percent to 1,376.17,
and the JPX-Nikkei Index 400 advanced 0.3 percent to

 (Editing by Shri Navaratnam)