Tokyo shares close lower on possible delay in setting up stock-buying body

TOKYO (AFX-ASIA) - Share prices closed broadly lower on concerns over a possible delay in the passage of bills necessary to regulate the establishment of a stock-buying body, dealers said.	    The ruling Liberal Democratic Party's policy research chief Taro Aso, who served as state minister for economic and fiscal policy until last month, said yesterday the party is now considering convening an extraordinary diet session in late September to discuss the issue.	    Dealers said the market also fell on technical factors after recent strong gains in the broad Topix index.	    The Nikkei 225 index closed down 240.36 points at 14,289.05, off a low of 14,227.37.	    Trading was active, with 856 mln shares changing hands.	    The Topix index was down 30.21 points at 1,410.76, while the Nikkei 300 was off 7.06 points at 283.84.	    There were 1,077 decliners and 300 risers, with 85 stocks unchanged.	    In late trading, the Nikkei June futures contract was down 250 points at 14,310 on the Osaka exchange and at 14,305 on the SGX.	    Naito Securities Co Ltd investment information department general manager Nobuyuki Nagamori said Aso's comments "came at a time when the market had lost almost all conceivable positive leads."	    Shinko Securities Co Ltd equity strategist Tsuyoshi Segawa said there was a clear difference of views with State Minister for Financial Policy Hakuo Yanagisawa who has stressed the need to arrange the necessary legislation by the end of September.	    Segawa also said technical factors related to the recent robust gains of the Topix index were a key driver pressuring the broader market.	    "The Topix index reached the key technical chart line at around the 1,440 point level yesterday," he said. "Given the rapidness of the latest rebound, today's downturn was just a technical and natural adjustment."	    Segawa said the broader market is expected to maintain a firm tone on the back of rising trading volumes and underlying expectations for progress in structural reforms.	    "But, for the time being, investors will be more alert to progress in discussions on details of structural reform proposals," he said.	    Prime Minister Junichiro Koizumi, while reiterating his strong will to advance structural reforms, left open details of action programs to future discussions in yesterday's policy speech.	    Among banks, Mizuho Holdings fell 60,000 yen to 740,000, with UFJ Holdings declining 98,000 to 861,000 and Tokyo Mitsubishi Financial down 40,000 at 1.30 mln yen. Sumitomo Mitsui Bank lost 61 to 1,124.	    Dealers also noted growing profit-taking among low-priced, domestic demand-linked stocks.	    "There is the emerging view that the prolonged bull run of domestic demand-linked shares has already peaked," Naito's Nagamori said.	    NKK fell 6 to 128, with its merger partner Kawasaki Steel shedding 2 to 146, while Sumitomo Metal was down 3 at 90 and Nippon Steel off 4 at 219.	    Caution ahead of the release of Cisco Systems' results later today also prompted profit-taking among local high-techs, dealers said.	    Fujitsu fell 50 to 1,716, with NEC declining 5 to 2,370, Toshiba off 15 at 811 and Mitsubishi Electric down 29 at 745.	    Rohm fell 1,480 to 23,570, with Advantest declining 10 to 14,760 and Kyocera down 270 at 12,300.	    "Institutional investors still seem to have outstanding long positions on high-techs which they built up almost one year ago and which they need to unwind on any rises," Nagamori said.	    "Although high-techs, on the day, took a breather following their recent rebound, they are expected to maintain their underlying firm performance, given the relatively solid performance of Sony," he added.	    Sony finished up 60 at 9,990, after hitting a low of 9,840.	    NTT DoCoMo fell 160,000 to 2.73 mln yen on a report that the company will reduce its monthly cellular phone rates by an effective 7-9 pct.	    NTT fell 18,000 to 880,000, failing to benefit from a report that the group will relocate some 60,000 jobs from its regional carrier units -- NTT East Corp and NTT West Corp -- by end-March 2004.	    Both NTT West and East later said they have not fixed their final estimate for the number of jobs to be re-allocated.	    KDDI shed 31,000 to 537,000 after a report that the company plans to sell three Tu-ka cellular phone carrier units.	    Capcom rose 190 to 4,350 as investors shifted their fund allocations to laggards within the game software industry, while cashing out of the sector's previous leaders, dealers said.	    Among other laggard stocks in the same sector, Aruze advanced 170 to 5,250 and Tecmo gained 72 to 1,369.	    "This sector has been underperforming very long time, and people now feel the time has come for bargain-hunting," Nagamori said.       

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