Nikkei flat, exporters down; Oki Electric jumps

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Tokyo, Mar 29: The Nikkei share average ended flat on Thursday as losses in Sony Corp. and other exporters on concerns about the U.S. economic outlook were offset by gains in Oki Electric Industry Co. after a media report about its restructuring plans.

Credit Saison Co. Ltd. tumbled 4.1 percent and became the biggest drag on the Nikkei after the consumer credit firm said on Wednesday it would cut its lending rates due to industry-wide regulations that will lower the maximum interest rate on consumer loans.

But shares of consumer lender Orient Corp. surged 30 percent, becoming the largest percentage gainer in the Tokyo exchange's first section, after the company on Wednesday secured a

Tokyo, Mar 29: The Nikkei share average ended flat on Thursday as losses in Sony Corp. and other exporters on concerns about the U.S. economic outlook were offset by gains in Oki Electric Industry Co. after a media report about its restructuring plans.

Credit Saison Co. Ltd. tumbled 4.1 percent and became the biggest drag on the Nikkei after the consumer credit firm said on Wednesday it would cut its lending rates due to industry-wide regulations that will lower the maximum interest rate on consumer loans.

But shares of consumer lender Orient Corp. surged 30 percent, becoming the largest percentage gainer in the Tokyo exchange's first section, after the company on Wednesday secured a $2.5 billion rescue package from Mizuho Financial Group Inc., Morgan Stanley and others.

''Given uncertainty about the economic outlook, investors are pondering which sectors to buy,'' said Masaki Iso, chief investment officer at Yasuda Asset Management.

Resource shares are coming under investor attention as oil and metal prices become buoyant on concerns about tensions between Iran and the West, he said. Higher oil prices have also encouraged investors to buy Mitsubishi Heavy Industries Ltd., a major producer of nuclear reactors for power plants.

But steel shares, which were among the most actively bought stocks until recently, are losing upward steam, he said.

The Nikkei closed up 9.21 points or 0.05 percent at 17,263.94.

The broader TOPIX index lost 0.02 percent to 1,710.68.

The Tokyo market has been down for the past two days as Monday was the last day for investors to buy stocks and be entitled to receive dividends for the fiscal year ending this month, and many stocks have lost their dividend allure.

But investors seemed to be back in the market and looking for bargains, said Zenshiro Mizuno, senior managing director at Marusan Securities Co Ltd.

''Selling in such high-dividend stocks as utilities, pharmaceuticals and steel has subsided,'' he said.

OKI ELECTRIC UP

Oki Electric surged 13.9 percent to 229 yen after the Nikkei business daily reported on Thursday the loss-making telecom equipment maker would regroup or close 10 billion yen worth of its business and was aiming for an operating profit of 5 to 10 billion yen in the business year ending March 2008.

Sanyo Electric Co. Ltd. jumped 9.6 percent to 205 yen after the company said on Wednesday that its president would step down next month amid an earnings slump.

But Sony fell 1.6 percent to 5,980 yen after comments from U.S.

Federal Reserve Chairman Ben Bernanke on Wednesday dashed hopes of an interest rate cut in one of Japan's key markets.

The consumer electronics giant makes 71 percent of its sales abroad. Likewise Honda Motor Co. Ltd., which makes two-fifths of its auto sales in the United States, slipped 0.7 percent to 4,070 yen.

Kenji Kobata, managing director in the research department of Ace Securities, said investors are likely to keep a cautious attitude as the U.S. economy is expected to stay in an adjustment phase during the first half of this year.

''I don't expect the market to fall far from the current level, as a soft-landing scenario for the U.S. economy is still alive,'' he added.

Japanese brewer Sapporo Holdings Ltd. lost 0.4 percent to 828 yen and heater maker Noritz Corp. fell 2.6 percent to 2,275 yen, after both companies persuaded shareholders to reject proposals from shareholder activists on Thursday.

After the close of trading, Mizuho Financial Group said it would merge two of its group brokerages in a stock deal, aiming to boost profit by more than 74 percent by 2010/11.

Trade activity rose to its highest level in nearly two weeks, with 2.34 billion shares changing hands on the Tokyo exchange's first section. Decliners beat advancers 872 to 717.

REUTERS

.5 billion rescue package from Mizuho Financial Group Inc., Morgan Stanley and others.

''Given uncertainty about the economic outlook, investors are pondering which sectors to buy,'' said Masaki Iso, chief investment officer at Yasuda Asset Management.

Resource shares are coming under investor attention as oil and metal prices become buoyant on concerns about tensions between Iran and the West, he said. Higher oil prices have also encouraged investors to buy Mitsubishi Heavy Industries Ltd., a major producer of nuclear reactors for power plants.

But steel shares, which were among the most actively bought stocks until recently, are losing upward steam, he said.

The Nikkei closed up 9.21 points or 0.05 percent at 17,263.94.

The broader TOPIX index lost 0.02 percent to 1,710.68.

The Tokyo market has been down for the past two days as Monday was the last day for investors to buy stocks and be entitled to receive dividends for the fiscal year ending this month, and many stocks have lost their dividend allure.

But investors seemed to be back in the market and looking for bargains, said Zenshiro Mizuno, senior managing director at Marusan Securities Co Ltd.

''Selling in such high-dividend stocks as utilities, pharmaceuticals and steel has subsided,'' he said.

OKI ELECTRIC UP

Oki Electric surged 13.9 percent to 229 yen after the Nikkei business daily reported on Thursday the loss-making telecom equipment maker would regroup or close 10 billion yen worth of its business and was aiming for an operating profit of 5 to 10 billion yen in the business year ending March 2008.

Sanyo Electric Co. Ltd. jumped 9.6 percent to 205 yen after the company said on Wednesday that its president would step down next month amid an earnings slump.

But Sony fell 1.6 percent to 5,980 yen after comments from U.S.

Federal Reserve Chairman Ben Bernanke on Wednesday dashed hopes of an interest rate cut in one of Japan's key markets.

The consumer electronics giant makes 71 percent of its sales abroad. Likewise Honda Motor Co. Ltd., which makes two-fifths of its auto sales in the United States, slipped 0.7 percent to 4,070 yen.

Kenji Kobata, managing director in the research department of Ace Securities, said investors are likely to keep a cautious attitude as the U.S. economy is expected to stay in an adjustment phase during the first half of this year.

''I don't expect the market to fall far from the current level, as a soft-landing scenario for the U.S. economy is still alive,'' he added.

Japanese brewer Sapporo Holdings Ltd. lost 0.4 percent to 828 yen and heater maker Noritz Corp. fell 2.6 percent to 2,275 yen, after both companies persuaded shareholders to reject proposals from shareholder activists on Thursday.

After the close of trading, Mizuho Financial Group said it would merge two of its group brokerages in a stock deal, aiming to boost profit by more than 74 percent by 2010/11.

Trade activity rose to its highest level in nearly two weeks, with 2.34 billion shares changing hands on the Tokyo exchange's first section. Decliners beat advancers 872 to 717.

REUTERS

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