Nikkei set to book fourth straight yearly gain

Tokyo, Dec 29: The Nikkei share average is likely end the year higher on Friday, booking its fourth consecutive year of growth -- something the Japanese stock market has not seen in nearly two decades.

The Tokyo market will see a half-day of trade on Friday before closing for the New Year holiday. It will reopen on Jan. 4 with another half-day of trade.

Shares of blue-chip firms such as Sony Corp. and other exporters may be helped by a favourable exchange rate and a higher close by Nikkei futures in U.S. trade.

''We are likely to end the year on a strong note,'' said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.

''While U.S. stocks edged down, the currency is a positive and Nikkei futures finished higher,'' Nishi said.

The yen neared 119 to the dollar in early Asian trade, trading at 118.91. A weaker yen is a boon for Japan's exporters as it increases profits when earnings from abroad are brought home.

Nikkei futures contracts expiring in March finished at 17,310 in Chicago 60 points above their close in Osaka The Nikkei is likely to move between 17,150 and 17,300, market participants said.

The benchmark was little changed on Thursday, gaining 1.66 points to 17,224.81. The Nikkei ended 2005 at 16,111.43.

U.S. stocks finished slightly lower on Thursday. The Nasdaq composite index declined 0.23 percent.

STOCKS TO WATCH -- Japan Tobacco Inc.

Japan Tobacco said on Thursday it would grant U.S.

biotechnology company MedImmune Inc. a license to develop and sell the tobacco company's antibody drug candidate outside Japan.

-- Toyota Motor Corp.

Toyota Motor said on Thursday it will start building the Yaris subcompact, the smallest car in its product line-up, at a joint venture plant it owns with Guangzhou Automobile Group in China in mid-2008.

Reuters