Japanese stocks clung to gains by mid-afternoon on Thursday as the dollar's rise against the yen encouraged investors to buy Toyota Motor <7203.T> and other exporters. Technology shares were also bought on hopes of strong earnings reports, which are scheduled to be released next week. "Hoya and Yahoo Japan submitted good scorecards, and so far investors' expectations have been met," said Koichi Seki, an equity manager, sales department Chuo Securities. The Nikkei average <.N225> added 0.43 percent to 11,996.25 as of 0450 GMT, while the broader TOPIX index <.TOPX> gained 0.46 percent to 1,209.16. Toyota, the world's number two automaker, led the rise on the main board, climbing 3.25 percent to 4,130 yen, a level last seen in August 2001.
Its peers also cruised higher, with Nissan Motor Co <7201.T> adding 2.47 percent to 1,244 yen and Honda Motor <7267.T> advancing 1.48 percent to 4,790 yen. A weakening yen also helped Canon Inc <7751.T> post a 2.78 percent gain to 5,550 yen. Investors welcomed a record 2003/04 net profit at Hoya Corp <7741.T>, pushing shares of the world's largest maker of glass lenses for digital cameras up 6.32 percent to 11,770 yen. Other technology shares with solid earnings prospects also lured buyers. Shares of Sharp Corp <6753.T> jumped 2.5 percent to 2,050 yen, an almost four-year high. The company said on Wednesday that the production yield at its LCD panel plant had risen to 80 percent from around 50 percent in January, suggesting a steep improvement in profitability since January. Sony Corp <6758.T> climbed 2.19 percent to 4,670 yen after sources familiar with the deal told Reuters that Metro-Goldwyn-Mayer Inc was in advanced talks to be bought by Sony and two buyout firms in a roughly $5 billion deal. Property and bank shares were shunned after their recent rapid rises. UFJ Holdings <8307.T> was down 3.5 percent at 662,000 yen, after hitting a 2004 high on Wednesday. Japan's largest developer, Mitsui Fudosan <8801.T>, fell 3.99 percent to 1,227 yen. Traders said the basic market tone was firm with investors keen to scoop up stocks on dips, suggesting that money remained in the market and trade volume would stay high. Trade volume on the first section of the Tokyo Stock Exchange has been above one billion shares in every session since February 26. "Investors take profits but re-invest in different sectors," said Hiroaki Kuramochi, managing director Bear Stearns Japan. "Money is circulating in a positive way," he added.///