Tokyo stocks edge up 0.02 pct as investors eye U.S. earnings

The Nikkei stock index edged up 0. 02 percent Tuesday as a comparatively strong yen impacted export- related issues and the broader market as investors took a wait-and- see-approach ahead of corporate earnings due to be released from the U.S.

The Nikkei 225 stock average added 3.22 points to close the day at 19,908.68 yen, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 4.56 points, or 0.29 percent, to finish at 1,590.82.

Brokers said that the market was taking a breather, having breached the psychologically important 20,000 point level on Friday, but despite Tuesday's lull analysts were confident that providing the U.S. corporate earnings reports came in on, or above par, and there are no major shocks that haven't already been factored in, like the U.S. dollar's strength or falling crude prices, the market here would remain in good shape.

They said that sentiment here remains upbeat ahead of Japan's own corporate earnings season as the market is being massively underpinned by the central bank and the government-linked pension fund buying on dips and pushing share prices up.

There's a lot of "circulatory buying" going on where stocks are sold whence they've risen to purchase those that are deemed undervalued," said Akira Tanoue of Nomura Securities Co.'s investment research department.

Japan's central bank bought a combined 37.7 billion yen in exchange-traded funds and real estate investment trusts on Monday, as part of its massive monetary easing program, sources close to the matter said Tuesday.

In currency markets the U.S. dollar was changing hands at 119. 76 yen, down from the 120.15 yen level logged in New York in late trade on Monday.

The strength of the U.S. dollar saw export-linked issues closed mixed, with game and console maker Nintendo dropping 1.64 percent to 19,440 yen, while consumer electronics giant Sony jumped 2.17 percent to close at 3,750 yen.

Nikkei heavyweight Fast Retailing, operator of the Uniqlo chain of apparel stores, weighed heavily on the market Tuesday, losing 0. 7 percent to 49,805 yen, but developer and publisher of free-to- play PC and mobile online games Nexon surged 9.9 percent, after Nomura raised its rating on the stock from "neutral" to "buy."

Trading volume on Tuesday rose slightly to 1.73 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 1.70 billion shares, with advancing issues beating declining ones by 1,279 to 475. Endi