Nikkei inches up on techs; Fast Retailing falls

Tokyo, July 4: Japan's Nikkei average inched higher on Wednesday as Mitsumi Electric Co. Ltd. and other technology stocks followed gains by similar U.S. firms, but clothing retailer Fast Retailing Co. Ltd. fell on lower sales.

Trade was slow and market participants said investors were likely holding back due to concern about the outcome of an upper house election later this month.

''The outcome of the election looks like it will be terrible.

Because of that, the market is drifting in a weaker direction,'' said Masayoshi Okamoto, senior equities dealer at Jujiya Securities.

''The market is now factoring in the premise that the ruling coalition will not be able to keep a majority.'' Investors are worried that political change will push foreign investors away from Japanese equities.

The benchmark Nikkei average was up 27.44 points at 18,177.34 as of 0108 GMT, poised to gain for the fifth straight session.

The broader TOPIX index rose 0.20 per cent to 1,785.37.

Tech-related shares rose, following a gain in the Nasdaq.

Mitsumi Electric, a maker of electronic parts, gained 1.4 per cent to 4,450 yen.

Sony Corp. rose 1.3 per cent to 6,270 yen.

Shares of Fast Retailing declined 4.2 per cent to 8,540 yen after the clothing retailer said its same-store sales fell 1.3 per cent in June, reflecting sluggish demand for products related to the country's ''cool biz'' campaign, which promotes casual clothing at work.

Reuters>