Tokyo shares close morning higher on structural reform hopes

TOKYO (AFX-ASIA) - Share prices closed the morning higher on hopes of structural reforms after LDP president Junichiro Koizumi is formally confirmed as prime minister, dealers said.	    Trading was, however, relatively subdued ahead of a formal announcement of a new cabinet, scheduled for Thursday.	    The Nikkei 225 index closed morning up 127.19 points at 13,870.37, off a high of 13,920.67 and a low of 13,769.58.	    Volume was 533 mln shares.	    The Topix index was up 12.48 points at 1,340.48, while the Nikkei 300 was up 2.97 points at 269.55.	    There were 809 rises and 496 declines, with 154 stocks unchanged.	    The Nikkei June futures contract was up 40 points at 13,870 on the Osaka exchange and at 13,850 on the SGX.	    Jyujiya Securities dealer Masafumi Okamoto said the expected cabinet announcement will not have a long-term impact on the equity market, which is already shifting its trading focus away from politics to companies' earnings as the reporting season gets underway, with the major high-tech companies scheduled to announce their year to March earnings tomorrow and Friday.	    "I think the market has basically digested (the likelihood) that high-tech companies will post a double-digit profit fall (for the year to March 2001) from a year earlier," he said. 	    "But, I don't think the equity market has digested (the possibility of a) 50 pct earnings fall at this stage. If that happens, it is possible that the Nikkei 225 will fall to the 12,000 point level," he said.	    "It is possible that high-tech firms with good earnings results will also be dragged down (if most profits in the sector are down by 50 pct year on year)," he said.	    He said that makers of electrical components in particular may post sharply lower profits for the year to March.	    High-tech stocks were broadly higher with Advantest up 370 yen at 15,170, Kyocera up 110 at 12,460 and TDK up 120 at 7,440. Rohm, however, fell 130 to 21,730.	    Semiconductor stocks were also broadly higher, with Fujitsu up 40 at 1,785 and NEC up 50 at 2,170. Hitachi, however, was down 8 at 1,141.	    Mizuho Holdings closed the morning up 9,000 at 676,000, Mitsubishi Tokyo Financial Group closed up 20,000 at 1.22 mln and UFJ closed up 16,000 at 791,000.	    Earlier, the Nihon Keizai Shimbun reported that the UFJ Group will bring forward the planned merger of Sanwa Bank and Tokai Bank to Jan 15 from April 2002.	    Daiei closed up 14 at 290.	    Sony closed up 220 at 9,150, while Aiwa closed down 8 at 1,280. 

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