Nikkei edges up on Tokyo Electron, Matsushita

TOKYO, Jan 11 (Reuters) The Nikkei share average edged up 0.29 percent on Tuesday as Tokyo Electron Ltd. rose on higher orders for its chip-testing equipment, but gains were curbed as some Nikkei heavyweights such as Fast Retailing Co. Ltd.

declined.

Market participants said trade in Nikkei futures was largely driving the spot market, causing the benchmark to swing between gains and losses through the morning.

''Large trading orders in the futures market are causing some concern,'' said Shinji Igarashi, an equity manager at the sales department of Chuo Securities.

''There are a lot of rumours about this, but it looks as if hedge funds might be the ones behind it,'' Igarashi said.

The Nikkei was up 49.91 points at 16,992.31 as of 0012 GMT.

The broader TOPIX was up 0.45 percent at 1,670.50.

Tokyo Electron gained 1.5 percent to 8,980 yen. Orders for its chip-making equipment rose 6.6 percent in October-December from the previous quarter to a six-year high, it said on Wednesday.

But Fast Retailing, a big contributor to the Nikkei, fell 1.1 percent to 11,150 yen.

Matsushita Electric Industrial Co. Ltd. gained 1.8 percent to 2,320 yen, recouping some of the losses it made in the previous session, after the maker of Panasonic products unveiled a midterm business plan under which it will aim to boost operating profit by nearly 80 percent over the next three business years.

Reuters DKS VP0705