Tokyo shares rise after better-than-expected Japanese GDP data / Japanese Stocks

TOKYO, Aug 12 (AFP) - Japanese share prices closed 0.81 percent higher Tuesday, boosted by stronger-than-expected economic growth in the June quarter, which prompted optimism about a long-awaited economic recovery in Japan, dealers said.

The Tokyo Stock Exchange's Nikkei 225 index ended up 77.01 points at 9,564. 81. The broader Topix index of all first-section stocks was 6.07 points higher at 934.59.

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The Japanese economy grew 0.6 percent in April-June, or at an annualized rate of 2.3 percent, the government said, well above the consensus estimate among economists for an increase of 0.2 percent from the previous quarter.

Dealers said, however, that the upside was capped by a lack of follow-through buying due to caution ahead of a meeting later in the day of the US Federal Reserve's policy-setting committee.

Daiwa Institute of Research senior economist Junichi Makino said the GDP data points toward an end of the prolonged economic slump in Japan, but he warned of a continued lack of strong growth momentum going forward.

"Under current circumstances, domestic demand lacks the ability to compensate for any declines in exports, if they take place," he said.

Susumu Abe, general manager of the investment information department at Mito Securities said GDP figures triggered buying interest in domestic demand-linked shares such as retailers, and cyclicals such as non-ferrous metal producers.

But the market's advance was restrained by investors opting to "see how the US markets will react to the announcement after the Fed policy board meeting," Abe said.

Among retailers, Aeon rose 50 yen to 2,975 yen, Mitsukoshi gained 16 to 306 and Takashimaya 27 to 616.

Seiyu fell 2 yen to 231, despite the announcement of new share placement with Wal-Mart Stores of the US and other investors to boost its capital by 65 million dollars.

In the non-ferrous metal sector, Mitsui Mining added 19 to 384, with Sumitomo Metal advancing 16 to 490 and Dowa Mining up seven at 453.

Hi-techs were lower, with Rohm falling 270 to 12,930, TDK off 20 at 6,920 and Tokyo Electron down 40 at 6,730.

"Due to uncertainty over the trend of US high-techs after the Fed policy board meeting, investors are feeling increased difficulties in trading high-techs," Mito's Abe said.

Auto shares fell, with Toyota sliding 10 to 3,070, Fuji Heavy down 22 at 568, Nissan three lower at 1,195 and Mazda off four at 285.

Gainers outnumbered decliners 906 to 453 with 163 issues unchanged on volume estimated at 963 million shares.

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Stocks-Japan