Nikkei edges up; Softbank gains, property stks dip

TOKYO, Nov 9 (Reuters) Tokyo stocks edged up on Thursday morning as investors snapped up Softbank Corp. after its strong results, but market gains were limited as traders continued to dump real estate shares on concerns about higher interest rates.

Industrial robot maker Fanuc Ltd. fell on caution ahead of machinery orders data on Friday, reflecting heightening concerns among investors about the strength of the Japanese economic recovery.

Softbank rose 1.92 percent after the Internet and telecoms group said its quarterly profit rose nearly eightfold, helping support the market. Consumer lender Acom Co. Ltd. also jumped after announcing its plan to cut 700 jobs.

As of 0130 GMT, the Nikkei was up 0.32 percent or 52.35 points at 16,268.09 points, picking up from a 1.08 percent fall the previous session to a one-month low. The broader TOPIX index was up 0.11 percent at 1,599.19.

Daiwa Securities strategist Tsuyoshi Nomaguchi said data released on Wednesday showing the diffusion index of leading economic indicators at 20 in September continued to weigh on market sentiment. A reading below 50 suggests an economic contraction in the months ahead.

''The leading indicator for September released yesterday was very bad, and it is also expected that GDP probably will not be very good,'' Nomaguchi said, referring to Japan gross domestic product data for July-September, due to be announced on Nov. 14.

Sumitomo Realty&Development Co. Ltd. and other property stocks extended losses on comments Tuesday by Bank of Japan Governor Toshihiko Fukui that the central bank will raise rates pre-emptively to avoid sharp swings in the economy.

Increased rates would likely hurt real estate companies, partly because they have relatively high levels of borrowing and also because rate hikes may dampen consumer appetite for housing loans.

Sumitomo Realty was down 2.2 percent at 3,560 yen, extending the previous session's 3 percent fall. Mitsubishi Estate Co. Ltd. , which is due to announce first half earnings at 0400, dropped 2.75 percent to 2,655 yen.

Fanuc fell 0.57 percent to 10,520 yen, reflecting worries that machinery orders data for September could again disappoint.

Core machinery orders, a highly volatile figure regarded as a a leading gauge of capital spending, rose only modestly in August after registering the biggest monthly drop in nearly 20 years in the preceding month.

REUTERS DH BST0748