TOKYO, Jan 22 - Tokyo stocks held onto mild gains on Thursday afternoon, as investors sought bargains after the previous day's fall, buying stocks with bright earnings prospects such as makers of consumer electronics goods. Panasonic brand maker Matsushita Electric Industrial Co <6752.T> hit a new 18-month high of 1,658 yen, and was up 1.54 percent at 1,645 in mid-afternoon trade. The tech-sensitive Nikkei average <.N225> was up 0.58 percent at 11,065.82 as of 0435 GMT, springing back from a 0.91 percent decline in the previous session, but below its morning high of 11,115.13. The broader TOPIX index <.TOPX> put on 0.56 percent to 1,076.39. "Investors are still snapping up earnings winners in sectors like consumer electronics," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.
"I'd say there's very little downside risk at the moment, but institutional selling is kicking in above the 11,000 mark, which is capping the Nikkei's gains." A level near 11,000 for the Nikkei is said to look attractive for Japanese banks and other institutional investors for locking in profits ahead of end-March book closings due to their relatively cautious view on the market and the economy. The biggest winner for the day was the construction sector, which got a boost after Credit Suisse First Boston upgraded its rating on Shimizu Corp <1803.T>, Taisei Corp <1801.T> and Obayashi Corp <1802.T> to "outperform" from "neutral." Shimizu, Japan's third biggest builder, jumped 5.54 percent to 457 yen, helping lift the construction sector index <.ICNST.T> by 3.19 percent. CSFB said in a report that a pick-up in private capital investment was likely to help boost earnings in the sector, which has suffered in recent years from overcapacity and declining public investment as the government curbs spending.//