Japan shares track regional markets higher

TOKYO — Japanese shares rose Thursday amid gains in key Asian markets, but investors traded with caution amid concern over the financial sector and ahead of a raft of major corporate earnings results.

The benchmark Nikkei 225 stock average gained 119.71 points, or 1.4 percent, to 8,847.01. The broader Topix index was up 1.2 percent at 839.50.

“The Nikkei index ended higher as we saw modest buybacks in the afternoon session,” said Yutaka Miura, senior strategist at Shinko Securities Co. Ltd. Gains in Hong Kong and other Asian markets also helped the Nikkei end higher.

“But overall trading lacked a clear direction as there was a wait-and-see mood in the market ahead of the release of corporate results,” Miura said.

Major Japanese companies, such as Toyota Motor Corp., are scheduled to release their earnings reports for the financial year to March 2009 in coming days.

Toyota, the world’s top automaker, rose 3.5 percent to 3,890 yen. Sony Corp. gained 1.8 percent to 2,525 yen. Panasonic Corp. added 1.8 percent to 1,409 yen.

But financial stocks were under pressure after Morgan Stanley announced worse-than-expected results and on a local report saying Nomura Holdings Inc. has incurred a record net loss of 700 billion yen ($7 billion) in the last fiscal year.

Japan’s biggest brokerage firm is to announce its earnings on Friday. Nomura was unchanged at 598 yen.

Shares of Honda Motor Co. gained 1.7 percent to 2,760 yen as the company said Thursday it was considering investing in Pioneer Corp., the ailing Japanese audiovisual products maker seeking to bolster its capital base.

Shares of Pioneer soared 23 percent to 397 yen.

In the currency market, the dollar was trading at 98.04 yen in Tokyo Thursday afternoon, hardly changed from 98.03 yen in New York late Wednesday. The euro was at $1.3040 from $1.3002.