Tokyo shares close mixed amid waning reaction to Koizumi leading LDP race

TOKYO (AFX-ASIA) - Share prices closed mixed after late profit-taking emerged on earlier gains made on the back of expectations that reformist Junichiro Koizumi will likely be elected as Liberal Democratic Party president, dealers said.	    The Nikkei 225 index at one stage this morning briefly topped the psychologically important 14,000 point level in positive reaction to the news that at the prefectural level vote during the weekend, Koizumi took a large lead over his main rival, former prime minister Ryutaro Hashimoto.	    The Nikkei 225 index closed down 50.07 points or 0.36 pct at 13,715.60, off a high of 14,051.97 and a low of 13,639.11	    Volume was 973 mln shares.	    The Topix index was up 1.25 points at 1,331.31, while the Nikkei 300 was up 0.11 points at 267.81.	    There were 641 decliners and 677 risers, with 145 stocks unchanged.	    The Nikkei June futures contract was down 130 points at 13,690 on the Osaka exchange and was at 13,695 on the SGX.	    Marusan Securities Co Ltd general manager of investment information Reiko Nakayama said that after initial positive reaction to the Koizumi news waned, investors will now want to see in detail the policies to be presented by Koizumi, after he is sworn in as LDP president and Japan's prime minister.	    "Even if there is the positive view that he may proceed with structural reforms more strongly than anyone else, he has not outlined the line-up of his new cabinet and details of his policies," Nakayama said.	    Hinode Securities general manager Kenji Karikomi said "there are positive and negative factors of Koizumi's policy," adding that in particular, the "likely appointment of Hakuo Yanagisawa as financial affairs minister is definitely a positive factor."	    The market also turned top-heavy on the speculation that LDP's policy research chief Shizuka Kamei may become the party's chief secretary under a  Koizumi cabinet, dealers said.	    "If Kamei takes that key position, we have to worry about a delay in the process of structural reforms, even under a new Koizumi cabinet," a Credit Lyonnais dealer said.	    Honode's Karikomi said despite the erratic price movement later in the session, overall sentiment remained solid, citing renewed capital inflow into small-sized stocks such as steels and shipbuilders.	    Among steel stocks, Nippon Steel rose 6 yen to 225, with Kawasaki Steel gaining 9 to 154, and NKK up 9 at 139.	    Shipbuilders were higher with Mitsubishi Heavy gaining 11 to 488, IHI up 5 at 288, and Hitachi Zosen 10 higher at 128.	    Marusan Securities' Nakayama said the overall market will maintain its solid performance, citing a receding downside risk for the U.S. high-tech markets.	    "Recent rises in the long-term interest rates (in the U.S.) may strengthen the shift of fund allocation to high-techs on NASDAQ," she said.	    "But it may take one or two more months before Japanese high-techs begin to benefit from such a positive development."	    Hinode's Karikomi said the Nikkei 225 may encounter some downside pressure this week, citing uncertainty over the earnings performance of Japanese high-tech leaders.	    "Ahead of earnings releases, investors will be reluctant to move to long-term investment plans. I think the Nikkei 225 will be pressured at around the 14,000 level (by profit-taking)," he said.	    Rohm ended 400 lower at 21,050, with TDK down 380 at 7,200 and Tokyo Electron 250 lower at 8,950.	    Yahoo Japan was down 610,000 or 10.87 pct at 5.00 mln after the company said the average monthly number of customers advertising on the Yahoo Japan site in the fourth quarter fell to 879, from 906 in the previous quarter.	    Daiwa Institute of Research analyst Makoto Ueno said he recommends investors buy the stock if its price falls to below the 5.0 mln yen level, but added that judging from today's price performance, investors are well aware of the long-term value of Yahoo Japan.	    "We have to objectively analyze the cause of the slowdown of its earnings growth, and you can conclude that structural problems were not responsible but cyclical factors mattered," he said.	    WOWOW, which debuted on the Mothers market of the Tokyo Stock Exchange Friday, ended the session down 70,000 at 700,000, compared with its IPO price of 1.15 mln yen.	    UBS Warburg senior analyst Kota Nakako said investors appreciate WOWOW's large subscriber base but see a growth risk for the company if it adheres to its current business model, under which it effectively airs only one proprietary channel. 

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