Nikkei tad higher on earnings hopes, Komatsu falls

Tokyo, Oct 23: The Nikkei average was a tad higher after a weak start on Monday as stocks with earnings prospects, such as Toyota Tsusho Corp., advanced as this week marks a peak in Japan's half-yearly results season.

But Komatsu Ltd. took a hit after rival Caterpillar Inc.

lowered earnings outlooks.

Shin-Etsu Chemical Co. Ltd., Yahoo Japan Corp. and Kao Corp.

are among major companies to announce results later in the day.

''The New York market has been moving little. That's because the market is going through an earnings season and investors focus on individual stocks. And the same is happening here,'' said Tatsuyuki Kawasaki, director of the equities trading division at Kaneyama Securities.

The Nikkei was 0.11 percent or 19.11 points higher at 16,670.74 as of 0055 GMT after rising 0.61 percent on Friday.

The broad TOPIX index was up 0.06 percent at 1,645.21.

Shares of Toyota Tsusho jumped 4.2 percent to 3,480 yen, becoming one of the biggest contributors to the Nikkei's feeble gain.

Toyota Tsusho, a trading company affiliated to Toyota Motor Corp., on Friday upgraded its full-year as well as half-year earnings forecasts thanks to improved metals and auto parts businesses.

Shares of Taiheiyo Cement Corp., Japan's biggest cement maker, gained 3.7 percent to 446 yen. The company on Friday raised its half-year profit forecast by 195 percent.

Shares of Komatsu dropped 3.8 percent to 2,130 yen after Caterpillar on Friday missed earnings expectations and cut its forecasts for 2006 and 2007 on slowing demand, followed by a steep slide in shares of the U.S. heavy equipment maker.

Another construction machinery maker Hitachi Construction Machinery Co. Ltd. slid 1.9 percent to 2,860 yen.

Reuters