1 October 2004, 10:46  Tokyo stocks start H2 higher after strong "tankan"

The Nikkei average closed up 1.49 percent on Friday, the first day of the fiscal second half, as a strong reading in the Bank of Japan's "tankan" business survey prompted investors at home and abroad to jump into the market. The quarterly tankan's headline diffusion index (DI) for sentiment at large manufacturers improved to plus 26 in September from plus 22 in June, compared with the market's consensus forecast of plus 23. But the Nikkei failed to break the psychological barrier of 11,000, reflecting investor caution towards the market and the Japanese economy amid high oil prices, analysts said. The Nikkei <.N225> finished up 161.60 points at 10,985.17, bolstered by gains in banks and resource and energy companies. It rose for a second session after hitting a six-week closing low on Wednesday.///

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