Roundup: Nikkei slips 0.06 pct on yen's late rally

The Nikkei stock index slipped 0.06 percent Tuesday as investors sought to lock in profits from recent gains and a late rally by the yen benched some market players, but losses were kept in check by hopes for a pullback, solid corporate earnings and a global trend towards monetary easing.

The Nikkei 225 index edged down 11.72 points, to close the day at 18,815.16, while the broader Topix index of all first-section issues added 0.12 percent, or 1.86 points, finish at 1,526.83.

Local traders said that the market got off to a positive start with investors buying following a strong lead from Wall Street overnight, with all three major bourses closing at record highs.

Early buying was also supported by the yen's dip against the U. S. dollar, which is always a boon for exporters who see their overseas profits boosted when repatriated, and general optimism for a global shift towards accommodative monetary policy.

Toyo Securities Co.'s Hiroaki Hiwada noted that the U.S. Federal Reserve is being very patient about raising its interest rates and China, the world's second-largest economy, has lowered its rates, contributing to currency-rich markets.

But with the U.S. dollar retreating to 119.58 yen in afternoon trade, from 120.17 yen logged in New York, some issues came under pressure and buying ran its course.

Major gainers, however, drew buying on individual merit, with Alps Electric leaping 5 percent to 2,842 yen, after Morgan Stanley hiked its rating of the stock to overweight from equal weight.

Similarly, Ono Pharmaceutical gained on a rating increase from Credit Suisse to outperform from neutral, and a target price boost from 12,000 yen to 18,000 yen.

But financial issues closed lower, with mega-banks Mizuho Financial Group and Mitsubishi UFJ relinquishing 1.0 and 1.05 percent, to close at 217 yen and 759 yen respectively.

Consumer electronics maker Sharp was in the spotlight, slumping 3.5 percent to 245 yen, following reports that it will announce net losses for the year to March of 200 billion yen (1.7 billion U. S. dollars) and look to its two main lenders for aid as it restructures, including a major exchange of debt for equity.

Trading volume on Tuesday rose to 2.31 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 2.17 billion shares, with declining issues outpacing advancing ones by 1,058 to 672. Endi