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Tokyo stocks inch up on mixed bag of business news (Roundup)

Dec 16, 2010, 7:04 GMT

Tokyo - Stocks in Tokyo rose modestly in Thursday trading as good news, including the yen's drop against the dollar, mixed with concerns about European debt.

The benchmark Nikkei 225 Stock Average was virtually flat, rising 1.51 points, or 0.01 per cent, to close at 10,311.29 while the broader Topix index gained 1.42 points, or 0.16 per cent, to 903.84.

Investors backed off taking large risks as Moody's Investors Service Inc warned Wednesday that it might downgrade Spain's sovereign debt rating, but they were cheered by positive US economic data.

Metal prices fell, hurting trading companies but helping the metal products sector, which was among the industries seeing the biggest gains. Others included banks and aviation while the yen's decline helped exporters, such as carmakers.

A weaker yen makes Japanese goods less expensive abroad and increases overseas earnings when they are repatriated.

On currency markets at 3 pm (0600 GMT), the dollar traded at 84.31-34 yen, up from Wednesday's 5 pm quote of 83.94-95 yen.

The euro traded at 1.3216-19 dollars, down from 1.3298-1.3300 dollars Wednesday, and at 111.44-47 yen, down from 111.63-67 yen.

Read more about Japan Markets



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