Roundup: Nikkei edges up 0.06 pct on factory output data, profit-taking caps gains

The Nikkei stock index inched up 0. 06 percent to a near 15-year closing high as some economic data released before the morning bell bolstered sentiment although profit-taking in later trade kept overall gains in check.

The Nikkei 225 index gained 12.15 points to finish the week at 18,797.94, while the broader Topix index of all first-section issues added 0.14 percent, or 2.17 points, to end at 1,523.85.

Buying got off to a bright start in the morning session, local traders said, following data released by the Ministry of Economy, Trade and Industry showing that Japan's industrial production rose 4.0 percent in January.

The increase marked the second straight on-month increase and biggest rise since June 2011 and topped median analysts' forecasts for a three percent rise.

Traders said that investors were also galvanized to buy on the ministry's upbeat assessment that output is on gradual recovery path and is expected to rise 0.2 percent in February from the previous month.

"Many investors are looking for a dip to buy shares. But there' s been no such dip the past few days. Demand is very strong," said Tsutomu Yamada, a market analyst at kabu.com Securities Co.

Other analysts said that data showing that inflation had slowed in January and was set to worsen next month owing to falling oil prices, was largely ignored by the market as the figure was in line with expectations and factored in, as was the case with statistics also released Friday painting a bleak picture of Japan' s employment situation.

The U.S. dollar was trading at 119.24 yen today, compared to 118.97 yen logged in Tokyo Thursday, which was a boost to exporters who rely on a weaker yen to augment their oversees profits when repatriated, but buying ran its course in the afternoon, traders said, as investors looked to lock in profits made and square away positions ahead of the weekend and on the last trading day of the month.

Consumer electronics giant Sony gained 2.03 percent to close at 3,414 yen, while electronic component maker Ryosan surged 8.4 percent to 3,040 yen, after announcing a share buyback plan.

Motorcycle maker Yamaha accelerated nearly two percent to 2,972 yen, after it announced it plans to produce cars in Europe before 2020, but Yokogawa Electric and Tokyo Electron lost 4 and 1.7 percent to 1,268 yen and 8,990 yen respectively, with the latter delaying a planned merger with the U.S.'s Applied Materials Inc. for a third time.

Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of apparel stores, added 0.74 percent, however, to close at 46,330 yen, but oil related issues sank on slumping prices, with exploration behemoth Inpex retreating 1.9 percent to 1,418.5 yen, while Japan Petroleum Exploration Co. fell 1.8 percent to finish at 4,010 yen.

Trading volume on Friday rose to 2.72 billion shares on the Tokyo Exchange's First Section, up from Thursday's volume of 2.39 billion shares, with declining issues outnumbering advancing ones by 1,079 to 699. Endi