Nikkei gains 0.4 pct, led by carmakers and techs

TOKYO | Wed Nov 11, 2009 9:13pm EST

TOKYO Nov 12 (Reuters) - Japan's Nikkei stock average edged up 0.4 percent on Thursday, buoyed by Wall Street gains on the view that global recovery is looking more certain, with Honda Motor Co (7267.T) and other carmakers up after a positive brokerage report.

FamilyMart Co (8028.T), Japan's third-largest convenience store operator, gained 2.4 percent after a source familiar with the matter said the company was in talks to buy smaller rival am/pm Japan Co. [ID:nBNG460546]

In thin trade, the benchmark Nikkei .N225 rose 43.57 points to 9,915.25 by the midday break. The broader Topix .TOPX, which is not as tech-heavy, edged down 0.1 percent to 871.75.

The Nikkei has recently been hit by falling trading volume, with the market lacking the energy to punch above resistance at 10,000 -- just about where the Nikkei's 25-day moving average comes in -- without fresh trading factors.

Carmakers rose after Goldman Sachs raised ratings on Fuji Heavy Industries (7270.T), maker of Subaru cars, to "buy" from "neutral" and added Honda Motor Co (7267.T), already rated "buy", to its Conviction List.

Analyst Kota Yuzawa cited larger-than-expected guidance hikes with first-half results based on cost cuts and improved production volume.

Shipping firm Nippon Yusen (9101.T) fell 2.5 percent to 319 yen after the Nikkei business daily said it would likely raise about 150 billion yen in its first public share offering in 40 years. [ID:nT369500]

Fellow shipper Kawasaki Kisen K.K. (9107.T) lost 3.6 percent to 318 yen. (Reporting by Elaine Lies; Editing by Chris Gallagher)

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